RCS vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricRCSSPYWinner
Expense Ratio0.98%0.09%
AUM$217M$789.1B
Dividend Yield10.43%1.01%
Holdings503505
YTD Return-4.62%+13.68%
1Y Return-20.92%+21.53%
3Y Return (annualized)+7.88%+21.44%
5Y Return (annualized)+1.09%+13.18%
Volatility (annualized)17.5%15.3%
Max Drawdown-60.9%-56.5%
Fund FamilyPIMCO (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionFeb 24, 1994Jan 22, 1993

RCS vs SPY Performance

PIMCO Strategic Income Fund Inc. (RCS) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RCS returned -20.92% while SPY returned +21.53%. Year to date, RCS is down 4.62% versus a gain of 13.68% for SPY.

Over three years, RCS compounded at +7.88% per year against +21.44% for SPY; over five years the annualized figures are +1.09% and +13.18% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs -0.45%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RCS has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -60.9% for RCS 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RCS charges 0.98% per year while SPY charges 0.09%. On a $10,000 position that is $98 vs $9 annually, a gap of $89 per year that compounds over a long holding period. On income, RCS currently yields 10.43% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

RCS and SPY share 1 holdings out of 521 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RCSWeight in SPYDifference
VICI0.50%0.04%0.46%

Frequently Asked Questions

Which is cheaper, RCS or SPY?

RCS has an expense ratio of 0.98% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, RCS or SPY?

Over the past year RCS returned -20.92% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), RCS annualized -0.45% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, RCS or SPY?

RCS has been the more volatile fund at 17.5% annualized versus 15.3% for SPY. Worst drawdown: RCS -60.9% vs SPY -56.5%.

Should I hold both RCS and SPY?

RCS and SPY have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RCS and SPY?

RCS and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 521 unique securities.

Which pays a higher dividend, RCS or SPY?

RCS yields 10.43% while SPY yields 1.01%, so RCS currently pays the higher dividend yield.

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