PPEM vs SPY
Putnam PanAgora ESG Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PPEM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PPEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $2M | $789.1B | |
| Dividend Yield | 49.41% | 1.01% | |
| Holdings | 116 | 505 | |
| YTD Return | +28.48% | +13.79% | |
| 1Y Return | +55.32% | +23.66% | |
| 3Y Return (annualized) | +24.92% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 16.7% | 15.3% | |
| Max Drawdown | -18.4% | -56.5% | |
| Fund Family | Putnam Investments | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 19, 2023 | Jan 22, 1993 |
PPEM vs SPY Performance
Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) is a ETF from Putnam Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PPEM returned +55.32% while SPY returned +23.66%. Year to date, PPEM is up 28.48% versus a gain of 13.79% for SPY.
Over three years, PPEM compounded at +24.92% per year against +21.40% for SPY. Across the full 3-year window we track, PPEM has the edge at +21.29% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PPEM has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -18.4% for PPEM 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PPEM charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, PPEM currently yields 49.41% against 1.01% for SPY.
Holdings Overlap
PPEM and SPY share 1 holdings out of 611 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PPEM | Weight in SPY | Difference |
|---|---|---|---|
| TEL | 0.24% | 0.09% | 0.15% |
Frequently Asked Questions
Which is cheaper, PPEM or SPY?
PPEM has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, PPEM or SPY?
Over the past year PPEM returned +55.32% vs +23.66% for SPY, so PPEM leads on 1-year performance. Over the longest common window we track (3 years), PPEM annualized +21.29% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PPEM or SPY?
PPEM has been the more volatile fund at 16.7% annualized versus 15.3% for SPY. Worst drawdown: PPEM -18.4% vs SPY -56.5%.
Should I hold both PPEM and SPY?
PPEM and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPEM and SPY?
PPEM and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, PPEM or SPY?
PPEM yields 49.41% while SPY yields 1.01%, so PPEM currently pays the higher dividend yield.
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