PFL vs SPY
PIMCO Income Strategy Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PFL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.37% | 0.09% | |
| AUM | $386M | $789.1B | |
| Dividend Yield | 12.79% | 1.01% | |
| Holdings | 401 | 505 | |
| YTD Return | -0.68% | +13.75% | |
| 1Y Return | +3.45% | +22.91% | |
| 3Y Return (annualized) | +10.51% | +21.67% | |
| 5Y Return (annualized) | +0.95% | +13.32% | |
| Volatility (annualized) | 19.7% | 15.3% | |
| Max Drawdown | -82.2% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 26, 2003 | Jan 22, 1993 |
PFL vs SPY Performance
PIMCO Income Strategy Fund (PFL) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PFL returned +3.45% while SPY returned +22.91%. Year to date, PFL is down 0.68% versus a gain of 13.75% for SPY.
Over three years, PFL compounded at +10.51% per year against +21.67% for SPY; over five years the annualized figures are +0.95% and +13.32% respectively. Across the full 23-year window we track, SPY has the edge at +8.85% annualized vs -1.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFL has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -82.2% for PFL 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFL charges 1.37% per year while SPY charges 0.09%. On a $10,000 position that is $137 vs $9 annually, a gap of $128 per year that compounds over a long holding period. On income, PFL currently yields 12.79% against 1.01% for SPY.
Holdings Overlap
PFL and SPY share 1 holdings out of 523 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PFL | Weight in SPY | Difference |
|---|---|---|---|
| VICI | 0.40% | 0.04% | 0.36% |
Frequently Asked Questions
Which is cheaper, PFL or SPY?
PFL has an expense ratio of 1.37% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $128 per year of difference.
Which performed better, PFL or SPY?
Over the past year PFL returned +3.45% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), PFL annualized -1.43% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PFL or SPY?
PFL has been the more volatile fund at 19.7% annualized versus 15.3% for SPY. Worst drawdown: PFL -82.2% vs SPY -56.5%.
Should I hold both PFL and SPY?
PFL and SPY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFL and SPY?
PFL and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, PFL or SPY?
PFL yields 12.79% while SPY yields 1.01%, so PFL currently pays the higher dividend yield.
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