PHYS vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: PHYSMore Diversified: SPY

Side-by-Side Comparison

MetricPHYSSPYWinner
Expense Ratio0.40%0.09%
AUM$15.0B$789.1B
Dividend Yield0.00%1.01%
Holdings3505
YTD Return-0.78%+13.79%
1Y Return+26.04%+23.66%
3Y Return (annualized)+30.00%+21.40%
5Y Return (annualized)+19.12%+13.37%
Volatility (annualized)17.5%15.3%
Max Drawdown-48.2%-56.5%
Fund FamilySprott Asset Management LPState Street Investment Management
CategoryCommodityEquity
InceptionFeb 25, 2010Jan 22, 1993

PHYS vs SPY Performance

Sprott Physical Gold Trust (PHYS) is a ETF from Sprott Asset Management LP and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PHYS returned +26.04% while SPY returned +23.66%. Year to date, PHYS is down 0.78% versus a gain of 13.79% for SPY.

Over three years, PHYS compounded at +30.00% per year against +21.40% for SPY; over five years the annualized figures are +19.12% and +13.37% respectively. Across the full 16-year window we track, SPY has the edge at +8.85% annualized vs +7.78%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PHYS has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -48.2% for PHYS 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PHYS charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, PHYS currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, PHYS or SPY?

PHYS has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, PHYS or SPY?

Over the past year PHYS returned +26.04% vs +23.66% for SPY, so PHYS leads on 1-year performance. Over the longest common window we track (16 years), PHYS annualized +7.78% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, PHYS or SPY?

PHYS has been the more volatile fund at 17.5% annualized versus 15.3% for SPY. Worst drawdown: PHYS -48.2% vs SPY -56.5%.

Should I hold both PHYS and SPY?

PHYS and SPY have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, PHYS or SPY?

PHYS yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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