PFN vs SPY
PIMCO Income Strategy Fund II vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. PFN offers more diversification with 513 holdings.
Side-by-Side Comparison
| Metric | PFN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.29% | 0.09% | |
| AUM | $686M | $821.1B | |
| Dividend Yield | 12.54% | 1.01% | |
| Holdings | 513 | 505 | |
| YTD Return | +1.60% | +12.93% | |
| 1Y Return | +5.27% | +20.62% | |
| 3Y Return (annualized) | +13.42% | +22.00% | |
| 5Y Return (annualized) | +2.25% | +13.33% | |
| Volatility (annualized) | 18.7% | 15.3% | |
| Max Drawdown | -83.4% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 29, 2004 | Jan 22, 1993 |
PFN vs SPY Performance
PIMCO Income Strategy Fund II (PFN) 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 PFN returned +5.27% while SPY returned +20.62%. Year to date, PFN is up 1.60% versus a gain of 12.93% for SPY.
Over three years, PFN compounded at +13.42% per year against +22.00% for SPY; over five years the annualized figures are +2.25% and +13.33% respectively. Across the full 22-year window we track, SPY has the edge at +8.82% annualized vs -1.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFN has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -83.4% for PFN 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFN charges 1.29% per year while SPY charges 0.09%. On a $10,000 position that is $129 vs $9 annually, a gap of $120 per year that compounds over a long holding period. On income, PFN currently yields 12.54% against 1.01% for SPY.
Holdings Overlap
PFN and SPY share 1 holdings out of 526 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 PFN | Weight in SPY | Difference |
|---|---|---|---|
| VICI | 0.42% | 0.04% | 0.38% |
Frequently Asked Questions
Which is cheaper, PFN or SPY?
PFN has an expense ratio of 1.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $120 per year of difference.
Which performed better, PFN or SPY?
Over the past year PFN returned +5.27% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (22 years), PFN annualized -1.92% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, PFN or SPY?
PFN has been the more volatile fund at 18.7% annualized versus 15.3% for SPY. Worst drawdown: PFN -83.4% vs SPY -56.5%.
Should I hold both PFN and SPY?
PFN and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFN and SPY?
PFN and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, PFN or SPY?
PFN yields 12.54% while SPY yields 1.01%, so PFN currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.