PGZ vs SPY
Principal Real Estate Income 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 505 holdings.
Side-by-Side Comparison
| Metric | PGZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.09% | |
| AUM | $74M | $821.1B | |
| Dividend Yield | 11.39% | 1.01% | |
| Holdings | 110 | 505 | |
| YTD Return | +8.23% | +12.93% | |
| 1Y Return | +7.94% | +20.62% | |
| 3Y Return (annualized) | +15.03% | +22.00% | |
| 5Y Return (annualized) | +2.33% | +13.33% | |
| Volatility (annualized) | 21.2% | 15.3% | |
| Max Drawdown | -68.8% | -56.5% | |
| Fund Family | Principal Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | Jan 22, 1993 |
PGZ vs SPY Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PGZ returned +7.94% while SPY returned +20.62%. Year to date, PGZ is up 8.23% versus a gain of 12.93% for SPY.
Over three years, PGZ compounded at +15.03% per year against +22.00% for SPY; over five years the annualized figures are +2.33% and +13.33% respectively. Across the full 20-year window we track, SPY has the edge at +8.82% annualized vs -1.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PGZ has been the more volatile fund, with annualized monthly volatility of 21.2% 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 -68.8% for PGZ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGZ charges 2.16% per year while SPY charges 0.09%. On a $10,000 position that is $216 vs $9 annually, a gap of $207 per year that compounds over a long holding period. On income, PGZ currently yields 11.39% against 1.01% for SPY.
Holdings Overlap
PGZ and SPY share 13 holdings out of 552 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGZ or SPY?
PGZ has an expense ratio of 2.16% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $207 per year of difference.
Which performed better, PGZ or SPY?
Over the past year PGZ returned +7.94% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), PGZ annualized -1.63% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, PGZ or SPY?
PGZ has been the more volatile fund at 21.2% annualized versus 15.3% for SPY. Worst drawdown: PGZ -68.8% vs SPY -56.5%.
Should I hold both PGZ and SPY?
PGZ and SPY have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGZ and SPY?
PGZ and SPY share 13 common holdings with a 1.1% weight overlap. Combined, they hold 552 unique securities.
Which pays a higher dividend, PGZ or SPY?
PGZ yields 11.39% while SPY yields 1.01%, so PGZ currently pays the higher dividend yield.
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