PFM vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricPFMSPYWinner
Expense Ratio0.52%0.09%
AUM$792M$789.1B
Dividend Yield1.34%1.01%
Holdings433505
YTD Return+13.18%+14.47%
1Y Return+19.19%+21.96%
3Y Return (annualized)+16.56%+21.70%
5Y Return (annualized)+10.92%+13.30%
Volatility (annualized)13.4%15.3%
Max Drawdown-54.7%-56.5%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionSep 15, 2005Jan 22, 1993

PFM vs SPY Performance

Invesco Dividend Achievers ETF (PFM) 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 PFM returned +19.19% while SPY returned +21.96%. Year to date, PFM is up 13.18% versus a gain of 14.47% for SPY.

Over three years, PFM compounded at +16.56% per year against +21.70% for SPY; over five years the annualized figures are +10.92% and +13.30% respectively. Across the full 21-year window we track, SPY has the edge at +8.87% annualized vs +7.24%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 worth weighing if you expect to sell during market stress rather than ride it out.

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 1.34% against 1.01% for SPY.

Holdings Overlap

42.9%overlap

PFM and SPY share 208 holdings out of 725 unique holdings combined, representing a 42.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFMWeight in SPYDifference
AAPL3.59%7.09%3.50%
MSFT3.25%4.43%1.18%
AVGO3.32%2.73%0.59%
LLYProProPro
JPM:USProProPro
WMTProProPro
JNJProProPro
VProProPro
XOMProProPro
LRCXProProPro
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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. On a $10,000 investment, that is $43 per year of difference.

Which performed better, PFM or SPY?

Over the past year PFM returned +19.19% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), PFM annualized +7.24% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, PFM or SPY?

SPY has been the more volatile fund at 15.3% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between PFM and SPY?

PFM and SPY share 208 common holdings with a 42.9% weight overlap. Combined, they hold 725 unique securities.

Which pays a higher dividend, PFM or SPY?

PFM yields 1.34% while SPY yields 1.01%, so PFM currently pays the higher dividend yield.

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