PEY vs SPY

PEY vs SPY

Which is better, PEY or SPY?

Small Cap Value against Large Cap Blend.

SPY has a lower expense ratio. PEY led over 1Y, SPY over 3Y, 5Y and the full window. PEY is less concentrated, with 29.6% of the fund in its ten largest positions against 38.0%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: PEY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPEYSPY
Expense Ratio0.54%0.09%Best
AUM$1.2B$814.4B
Dividend Yield4.22%1.01%
Holdings52505
YTD Return+22.22%Best+12.71%
1Y Return+20.10%Best+19.36%
3Y Return (annualized)+12.11%+21.09%Best
5Y Return (annualized)+8.56%+12.69%Best
Volatility (annualized)17.6%14.8%Best
Max Drawdown-75.6%-56.5%Best
$10,000 over 5 years$15,078$18,173Best
Top 10 Weight29.6%Best38.0%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
StyleSmall Cap ValueLarge Cap Blend
InceptionDec 9, 2004Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 9, 2004 to Sep 8, 2026 (21.7 years).

PEY vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 21.7 years both funds cover.

PEY vs SPY Performance

Invesco High Yield Equity Dividend Achievers ETF (PEY) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PEY returned +20.10% while SPY returned +19.36%. Year to date, PEY is up 22.22% versus a gain of 12.71% for SPY.

Over three years, PEY compounded at +12.11% per year against +21.09% for SPY; over five years the annualized figures are +8.56% and +12.69% respectively. Across the full 22-year window we track, SPY has the edge at +9.30% annualized vs +3.52%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PEY has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 14.8% 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 what each fund did in the worst stretch of the window measured above.

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 4.22% against 1.01% for SPY.

Holdings Overlap

PEY already in SPY47.7%
SPY already in PEY2.4%

47.7% of PEY's money is in holdings SPY also owns. 2.4% of SPY's money is in holdings PEY also owns.

The two portfolios partly overlap.

25 positions in common, counted across the 51 positions we hold weights for in PEY and 503 in SPY, against full books of 52 and 505.

What only one of them owns

Measured across the 51 and 503 positions we hold weights for.

SPY holds 468 positions PEY does not, 97.0% of the fund.

Largest: NVDA 7.71%, AAPL 6.83%, MSFT 5.50%, AMZN 4.08%, GOOGL 3.33%

Top Shared Holdings

StockWeight in PEYWeight in SPYDifference
PFEPfizer, Inc.2.39%0.22%2.17%
PRUPrudential Financial Inc.2.48%0.06%2.42%
UPSUnited Parcel Service, Inc2.32%0.12%2.20%
CLXClorox Co.2.36%0.02%2.34%
VZVerizon Communications Inc Com Usd12.09%0.29%1.80%
MOAltria Group Inc.2.18%0.17%2.01%
KMBKimberly-Clark Corp.2.19%0.06%2.13%
PAYXPaychex, Inc.2.08%0.06%2.02%
BMYBristol-Myers Squibb Co.1.86%0.20%1.66%
HRLHormel Foods Corp.2.04%0.01%2.03%

47.7% of PEY is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

PEYSPY

Free for up to 10 holdings. No account needed.

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, by $45 a year on a $10,000 investment.

Which performed better, PEY or SPY?

Over the past year PEY returned +20.10% vs +19.36% for SPY, so PEY leads on 1-year performance. Over the longest common window we track (22 years), PEY annualized +3.52% vs +9.30% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PEY or SPY?

PEY has been the more volatile fund at 17.6% annualized versus 14.8% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between PEY and SPY?

47.7% of PEY's money is in holdings SPY also owns. 2.4% of SPY's is in holdings PEY also owns. They hold 25 positions in common, counted across the 51 positions we hold weights for in PEY and 503 in SPY.

Which pays a higher dividend, PEY or SPY?

PEY yields 4.22% while SPY yields 1.01%, so PEY currently pays the higher dividend yield.

Is SPY better than PEY?

SPY has a lower expense ratio. PEY led over 1Y, SPY over 3Y, 5Y and the full window. PEY is less concentrated, with 29.6% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.