PFM vs SPY
Invesco Dividend Achievers ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PFM or SPY?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. PFM is less concentrated, with 30.8% of the fund in its ten largest positions against 38.2%.
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
| Metric | PFM | SPY |
|---|---|---|
| Expense Ratio | 0.52% | 0.09%Best |
| AUM | $776M | $811.2B |
| Dividend Yield | 1.30% | 0.98% |
| Holdings | 864 | 1,515 |
| YTD Return | +9.27% | +14.93%Best |
| 1Y Return | +10.72% | +17.25%Best |
| 3Y Return (annualized) | +16.99% | +23.24%Best |
| 5Y Return (annualized) | +10.75% | +13.88%Best |
| Volatility (annualized) | 13.4%Best | 15.0% |
| Max Drawdown | -54.7%Best | -56.5% |
| $10,000 over 5 years | $16,662 | $19,153Best |
| Top 10 Weight | 30.8%Best | 38.2% |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 15, 2005 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2005 to Oct 6, 2026 (21.1 years).
PFM 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 21.1 years both funds cover.
PFM vs SPY Performance
Invesco Dividend Achievers ETF (PFM) 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 PFM returned +10.72% while SPY returned +17.25%. Year to date, PFM is up 9.27% versus a gain of 14.93% for SPY.
Over three years, PFM compounded at +16.99% per year against +23.24% for SPY; over five years the annualized figures are +10.75% and +13.88% respectively. Across the full 21-year window we track, SPY has the edge at +9.55% annualized vs +7.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 13.4% for PFM. 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 -54.7% for PFM 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PFM charges 0.52% per year while SPY charges 0.09%. On a $10,000 position that is $52 vs $9 annually, a gap of $43 per year that compounds over a long holding period. On income, PFM currently yields 1.30% against 0.98% for SPY.
Holdings Overlap
94.7% of PFM's money is in holdings SPY also owns. 48.7% of SPY's money is in holdings PFM also owns.
Most of PFM is already inside SPY. Owning both mostly buys the same companies twice.
207 positions in common, counted across the 429 positions we hold weights for in PFM and 504 in SPY, against full books of 864 and 1,515.
What only one of them owns
Our book lists 291 positions for SPY that do not appear in our book for PFM (50.5% of the fund), and 184 for PFM that do not appear in SPY (5.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PFM | Weight in SPY | Difference |
|---|---|---|---|
| AAPLApple, Inc | 4.17% | 7.45% | 3.28% |
| MSFTMicrosoft Corp | 4.31% | 5.71% | 1.40% |
| AVGOBroadcom Inc | 3.18% | 2.48% | 0.70% |
| LLYEli Lilly & Co. | 3.79% | 1.37% | 2.42% |
| JPMJpmorgan Chase | 3.45% | 1.43% | 2.02% |
| WMTWalmart, Inc. | 3.08% | 0.73% | 2.35% |
| XOMExxon Mobil Corp. | 2.48% | 1.04% | 1.44% |
| JNJJohnson & Johnson - Common | 2.31% | 0.98% | 1.33% |
| VVisa Inc Class A | 2.22% | 0.95% | 1.27% |
| MAMastercard Inc | 1.80% | 0.71% | 1.09% |
94.7% of PFM 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PFM or SPY?
PFM has an expense ratio of 0.52% while SPY charges 0.09%. SPY is the cheaper option, by $43 a year on a $10,000 investment.
Which performed better, PFM or SPY?
Over the past year PFM returned +10.72% vs +17.25% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), PFM annualized +7.00% vs +9.55% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PFM or SPY?
SPY has been the more volatile fund at 15.0% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs SPY -56.5%.
Should I hold both PFM and SPY?
PFM and SPY have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between PFM and SPY?
94.7% of PFM's money is in holdings SPY also owns. 48.7% of SPY's is in holdings PFM also owns. They hold 207 positions in common, counted across the 429 positions we hold weights for in PFM and 504 in SPY.
Which pays a higher dividend, PFM or SPY?
PFM yields 1.30% while SPY yields 0.98%, so PFM currently pays the higher dividend yield.
Is SPY better than PFM?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. PFM is less concentrated, with 30.8% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.