POWA vs SPY

POWA vs SPY

Which is better, POWA or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. POWA is less concentrated, with 23.9% of the fund in its ten largest positions against 37.8%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: POWA

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPOWASPY
Expense Ratio0.40%0.09%Best
AUM$175M$804.7B
Dividend Yield0.94%0.98%
Holdings52505
YTD Return-3.31%+12.09%Best
1Y Return-2.58%+16.29%Best
3Y Return (annualized)+9.84%+21.20%Best
5Y Return (annualized)+6.33%+13.37%Best
Volatility (annualized)13.3%Best15.4%
Max Drawdown-47.9%Best-56.5%
$10,000 over 5 years$13,592$18,728Best
Top 10 Weight23.9%Best37.8%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionDec 15, 2006Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 15, 2006 to Sep 18, 2026 (19.8 years).

POWA vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.

POWA vs SPY Performance

Invesco Bloomberg Pricing Power ETF (POWA) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year POWA returned -2.58% while SPY returned +16.29%. Year to date, POWA is down 3.31% versus a gain of 12.09% for SPY.

Over three years, POWA compounded at +9.84% per year against +21.20% for SPY; over five years the annualized figures are +6.33% and +13.37% respectively. Across the full 20-year window we track, SPY has the edge at +9.27% annualized vs +8.30%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 13.3% for POWA. 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 -47.9% for POWA and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

POWA 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, POWA currently yields 0.94% against 0.98% for SPY.

Holdings Overlap

POWA already in SPY83.9%
SPY already in POWA10.6%

83.9% of POWA's money is in holdings SPY also owns. 10.6% of SPY's money is in holdings POWA also owns.

Most of POWA is already inside SPY. Owning both mostly buys the same companies twice.

42 positions in common, counted across the 51 positions we hold weights for in POWA and 504 in SPY, against full books of 52 and 505.

What only one of them owns

Our book lists 456 positions for SPY that do not appear in our book for POWA (88.8% of the fund), and 8 for POWA that do not appear in SPY (14.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in POWAWeight in SPYDifference
MSFTMicrosoft Corp2.33%5.66%3.33%
ROPRoper Technologies Inc.2.54%0.06%2.48%
BBYBest Buy Co. Inc.2.54%0.02%2.52%
MTDMettler-Toledo International Inc.2.50%0.04%2.46%
HDHome Depot Inc/The2.04%0.48%1.56%
CORCencora Inc2.36%0.10%2.26%
MCKMckesson Corp.2.26%0.17%2.09%
ADBEAdobe Systems2.23%0.18%2.05%
WATWaters Corp.2.34%0.06%2.28%
GRMNGarminltd.2.31%0.07%2.24%

83.9% of POWA is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

POWASPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, POWA or SPY?

POWA has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option, by $31 a year on a $10,000 investment.

Which performed better, POWA or SPY?

Over the past year POWA returned -2.58% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), POWA annualized +8.30% vs +9.27% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, POWA or SPY?

SPY has been the more volatile fund at 15.4% annualized versus 13.3% for POWA. Worst drawdown: POWA -47.9% vs SPY -56.5%.

Should I hold both POWA and SPY?

POWA and SPY have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between POWA and SPY?

83.9% of POWA's money is in holdings SPY also owns. 10.6% of SPY's is in holdings POWA also owns. They hold 42 positions in common, counted across the 51 positions we hold weights for in POWA and 504 in SPY.

Which pays a higher dividend, POWA or SPY?

POWA yields 0.94% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than POWA?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. POWA is less concentrated, with 23.9% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.