PWS vs SPY

PWS vs SPY

Which is better, PWS or SPY?

Tactical Allocation against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. PWS is less concentrated, with 30.4% of the fund in its ten largest positions against 37.8%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: PWS

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

MetricPWSSPY
Expense Ratio0.60%0.09%Best
AUM$25M$804.7B
Dividend Yield1.27%0.98%
Holdings359505
YTD Return-0.29%+11.97%Best
1Y Return+2.10%+16.40%Best
3Y Return (annualized)+6.95%+21.10%Best
5Y Return (annualized)+1.46%+12.88%Best
Volatility (annualized)12.5%Best16.4%
Max Drawdown-24.9%Best-34.1%
$10,000 over 5 years$10,752$18,327Best
Top 10 Weight30.4%Best37.8%
Fund FamilyPacer ETFsState Street Investment Management
CategoryAllocation/BalancedEquity
StyleTactical AllocationLarge Cap Blend
InceptionDec 11, 2017Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 12, 2017 to Sep 14, 2026 (8.8 years).

PWS 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 8.8 years both funds cover.

PWS vs SPY Performance

Pacer WealthShield ETF (PWS) is an ETF from Pacer ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PWS returned +2.10% while SPY returned +16.40%. Year to date, PWS is down 0.29% versus a gain of 11.97% for SPY.

Over three years, PWS compounded at +6.95% per year against +21.10% for SPY; over five years the annualized figures are +1.46% and +12.88% respectively. Across the full 9-year window we track, SPY has the edge at +13.67% annualized vs +4.23%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 12.5% for PWS. 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 -24.9% for PWS and -34.1% 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 0.53. They move together some of the time, and apart the rest.

Fees and Cost Over Time

PWS 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, PWS currently yields 1.27% against 0.98% for SPY.

Holdings Overlap

PWS already in SPY81.6%
SPY already in PWS52.9%

81.6% of PWS's money is in holdings SPY also owns. 52.9% of SPY's money is in holdings PWS also owns.

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

211 positions in common, counted across the 352 positions we hold weights for in PWS and 504 in SPY, against full books of 359 and 505.

What only one of them owns

Our book lists 285 positions for SPY that do not appear in our book for PWS (46.5% of the fund), and 132 for PWS that do not appear in SPY (16.9%).

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 PWSWeight in SPYDifference
NVDANvidia Corp4.44%8.01%3.57%
AAPLApple, Inc3.86%7.26%3.40%
MSFTMicrosoft Corp3.13%5.66%2.53%
XOMExxon Mobil Corp.6.10%1.04%5.06%
CVXChevron Corp3.52%0.60%2.92%
AVGOBroadcom Inc1.46%2.66%1.20%
WELLWelltower, Inc.2.66%0.26%2.40%
MUMicron Technology, Inc.0.90%1.60%0.70%
PLDPrologis Inc2.08%0.20%1.88%
CATCaterpillar, Inc.1.26%0.55%0.71%

81.6% of PWS 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.

PWSSPY

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Frequently Asked Questions

Which is cheaper, PWS or SPY?

PWS has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option, by $51 a year on a $10,000 investment.

Which performed better, PWS or SPY?

Over the past year PWS returned +2.10% vs +16.40% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), PWS annualized +4.23% vs +13.67% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PWS or SPY?

SPY has been the more volatile fund at 16.4% annualized versus 12.5% for PWS. Worst drawdown: PWS -24.9% vs SPY -34.1%.

Should I hold both PWS and SPY?

PWS and SPY have a monthly-return correlation of 0.53, 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 PWS and SPY?

81.6% of PWS's money is in holdings SPY also owns. 52.9% of SPY's is in holdings PWS also owns. They hold 211 positions in common, counted across the 352 positions we hold weights for in PWS and 504 in SPY.

Which pays a higher dividend, PWS or SPY?

PWS yields 1.27% while SPY yields 0.98%, so PWS currently pays the higher dividend yield.

Is SPY better than PWS?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. PWS is less concentrated, with 30.4% 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.