PIPE vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: PIPEMore Diversified: SPY

Side-by-Side Comparison

MetricPIPESPYWinner
Expense Ratio0.75%0.09%
AUM$65M$789.1B
Dividend Yield3.75%1.01%
Holdings28505
YTD Return+21.47%+13.79%
1Y Return+25.10%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)14.8%15.3%
Max Drawdown-15.7%-56.5%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionFeb 20, 2025Jan 22, 1993

PIPE vs SPY Performance

Invesco SteelPath MLP & Energy Infrastructure ETF (PIPE) 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 PIPE returned +25.10% while SPY returned +23.66%. Year to date, PIPE is up 21.47% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.8% for PIPE. 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 -15.7% for PIPE 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 -0.19. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PIPE charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, PIPE currently yields 3.75% against 1.01% for SPY.

Holdings Overlap

0.4%overlap

PIPE and SPY share 4 holdings out of 525 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PIPEWeight in SPYDifference
TRGP7.89%0.09%7.80%
WMB6.08%0.14%5.94%
OKE4.81%0.09%4.72%
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Frequently Asked Questions

Which is cheaper, PIPE or SPY?

PIPE has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, PIPE or SPY?

Over the past year PIPE returned +25.10% vs +23.66% for SPY, so PIPE leads on 1-year performance. Over the longest common window we track (2 years), PIPE annualized +14.80% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, PIPE or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.8% for PIPE. Worst drawdown: PIPE -15.7% vs SPY -56.5%.

Should I hold both PIPE and SPY?

PIPE and SPY have a monthly-return correlation of -0.19, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PIPE and SPY?

PIPE and SPY share 4 common holdings with a 0.4% weight overlap. Combined, they hold 525 unique securities.

Which pays a higher dividend, PIPE or SPY?

PIPE yields 3.75% while SPY yields 1.01%, so PIPE currently pays the higher dividend yield.

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