PYZ vs SPY
Invesco Dorsey Wright Basic Materials Momentum ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PYZ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PYZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $74M | $789.1B | |
| Dividend Yield | 0.47% | 1.01% | |
| Holdings | 45 | 505 | |
| YTD Return | +13.15% | +13.68% | |
| 1Y Return | +26.44% | +21.53% | |
| 3Y Return (annualized) | +15.48% | +21.44% | |
| 5Y Return (annualized) | +7.36% | +13.18% | |
| Volatility (annualized) | 24.1% | 15.3% | |
| Max Drawdown | -65.7% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 12, 2006 | Jan 22, 1993 |
PYZ vs SPY Performance
Invesco Dorsey Wright Basic Materials Momentum ETF (PYZ) 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 PYZ returned +26.44% while SPY returned +21.53%. Year to date, PYZ is up 13.15% versus a gain of 13.68% for SPY.
Over three years, PYZ compounded at +15.48% per year against +21.44% for SPY; over five years the annualized figures are +7.36% and +13.18% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +8.72%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PYZ has been the more volatile fund, with annualized monthly volatility of 24.1% 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 -65.7% for PYZ 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PYZ 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, PYZ currently yields 0.47% against 1.01% for SPY.
Holdings Overlap
PYZ and SPY share 10 holdings out of 536 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PYZ or SPY?
PYZ 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, PYZ or SPY?
Over the past year PYZ returned +26.44% vs +21.53% for SPY, so PYZ leads on 1-year performance. Over the longest common window we track (20 years), PYZ annualized +8.72% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PYZ or SPY?
PYZ has been the more volatile fund at 24.1% annualized versus 15.3% for SPY. Worst drawdown: PYZ -65.7% vs SPY -56.5%.
Should I hold both PYZ and SPY?
PYZ and SPY have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PYZ and SPY?
PYZ and SPY share 10 common holdings with a 1.0% weight overlap. Combined, they hold 536 unique securities.
Which pays a higher dividend, PYZ or SPY?
PYZ yields 0.47% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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