PWZ vs SPY
Invesco California AMT-Free Municipal Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. PWZ offers more diversification with 1,175 holdings.
Side-by-Side Comparison
| Metric | PWZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.09% | |
| AUM | $1.2B | $821.1B | |
| Dividend Yield | 3.73% | 1.01% | |
| Holdings | 1,175 | 505 | |
| YTD Return | +1.00% | +12.68% | |
| 1Y Return | +7.67% | +21.82% | |
| 3Y Return (annualized) | +3.14% | +21.98% | |
| 5Y Return (annualized) | -0.18% | +12.89% | |
| Volatility (annualized) | 7.0% | 15.3% | |
| Max Drawdown | -24.7% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 11, 2007 | Jan 22, 1993 |
PWZ vs SPY Performance
Invesco California AMT-Free Municipal Bond ETF (PWZ) 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 PWZ returned +7.67% while SPY returned +21.82%. Year to date, PWZ is up 1.00% versus a gain of 12.68% for SPY.
Over three years, PWZ compounded at +3.14% per year against +21.98% for SPY; over five years the annualized figures are -0.18% and +12.89% respectively. Across the full 19-year window we track, SPY has the edge at +8.81% annualized vs +0.62%. 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 7.0% for PWZ. 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 -24.7% for PWZ 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PWZ charges 0.28% per year while SPY charges 0.09%. On a $10,000 position that is $28 vs $9 annually, a gap of $19 per year that compounds over a long holding period. On income, PWZ currently yields 3.73% against 1.01% for SPY.
Holdings Overlap
PWZ and SPY share 0 holdings out of 1011 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PWZ or SPY?
PWZ has an expense ratio of 0.28% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, PWZ or SPY?
Over the past year PWZ returned +7.67% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), PWZ annualized +0.62% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, PWZ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.0% for PWZ. Worst drawdown: PWZ -24.7% vs SPY -56.5%.
Should I hold both PWZ and SPY?
PWZ and SPY have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PWZ and SPY?
PWZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1011 unique securities.
Which pays a higher dividend, PWZ or SPY?
PWZ yields 3.73% while SPY yields 1.01%, so PWZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.