POWA vs SPY
Invesco Bloomberg Pricing Power ETF 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 | POWA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $184M | $821.1B | |
| Dividend Yield | 0.93% | 1.01% | |
| Holdings | 52 | 505 | |
| YTD Return | +2.26% | +12.68% | |
| 1Y Return | +3.97% | +21.82% | |
| 3Y Return (annualized) | +11.83% | +21.98% | |
| 5Y Return (annualized) | +6.83% | +12.89% | |
| Volatility (annualized) | 13.3% | 15.3% | |
| Max Drawdown | -47.9% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 15, 2006 | Jan 22, 1993 |
POWA vs SPY Performance
Invesco Bloomberg Pricing Power ETF (POWA) 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 POWA returned +3.97% while SPY returned +21.82%. Year to date, POWA is up 2.26% versus a gain of 12.68% for SPY.
Over three years, POWA compounded at +11.83% per year against +21.98% for SPY; over five years the annualized figures are +6.83% and +12.89% respectively. Across the full 20-year window we track, SPY has the edge at +8.81% annualized vs +8.64%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 0.93% against 1.01% for SPY.
Holdings Overlap
POWA and SPY share 42 holdings out of 513 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $31 per year of difference.
Which performed better, POWA or SPY?
Over the past year POWA returned +3.97% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), POWA annualized +8.64% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, POWA or SPY?
SPY has been the more volatile fund at 15.3% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between POWA and SPY?
POWA and SPY share 42 common holdings with a 6.8% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, POWA or SPY?
POWA yields 0.93% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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