PEY vs SPY
Invesco High Yield Equity Dividend Achievers ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PEY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PEY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.09% | |
| AUM | $1.1B | $789.1B | |
| Dividend Yield | 4.40% | 1.01% | |
| Holdings | 53 | 505 | |
| YTD Return | +26.22% | +14.47% | |
| 1Y Return | +23.98% | +21.96% | |
| 3Y Return (annualized) | +12.18% | +21.70% | |
| 5Y Return (annualized) | +8.97% | +13.30% | |
| Volatility (annualized) | 17.7% | 15.3% | |
| Max Drawdown | -75.6% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2004 | Jan 22, 1993 |
PEY vs SPY Performance
Invesco High Yield Equity Dividend Achievers ETF (PEY) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PEY returned +23.98% while SPY returned +21.96%. Year to date, PEY is up 26.22% versus a gain of 14.47% for SPY.
Over three years, PEY compounded at +12.18% per year against +21.70% for SPY; over five years the annualized figures are +8.97% and +13.30% respectively. Across the full 22-year window we track, SPY has the edge at +8.87% annualized vs +3.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEY has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -75.6% for PEY and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEY charges 0.54% per year while SPY charges 0.09%. On a $10,000 position that is $54 vs $9 annually, a gap of $45 per year that compounds over a long holding period. On income, PEY currently yields 4.40% against 1.01% for SPY.
Holdings Overlap
PEY and SPY share 25 holdings out of 528 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEY or SPY?
PEY has an expense ratio of 0.54% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, PEY or SPY?
Over the past year PEY returned +23.98% vs +21.96% for SPY, so PEY leads on 1-year performance. Over the longest common window we track (22 years), PEY annualized +3.69% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, PEY or SPY?
PEY has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: PEY -75.6% vs SPY -56.5%.
Should I hold both PEY and SPY?
PEY and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEY and SPY?
PEY and SPY share 25 common holdings with a 2.3% weight overlap. Combined, they hold 528 unique securities.
Which pays a higher dividend, PEY or SPY?
PEY yields 4.40% while SPY yields 1.01%, so PEY currently pays the higher dividend yield.
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