SPY vs USAI
State Street SPDR S&P 500 ETF Trust vs Pacer American Energy Infrastructure ETF
Quick Verdict
SPY has a lower expense ratio. USAI delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | USAI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.75% | |
| AUM | $789.1B | $130M | |
| Dividend Yield | 1.01% | 4.23% | |
| Holdings | 505 | 37 | |
| YTD Return | +14.47% | +23.98% | |
| 1Y Return | +21.96% | +23.47% | |
| 3Y Return (annualized) | +21.70% | +24.29% | |
| 5Y Return (annualized) | +13.30% | +20.71% | |
| Volatility (annualized) | 15.3% | 28.6% | |
| Max Drawdown | -56.5% | -69.3% | |
| Fund Family | State Street Investment Management | Pacer ETFs | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 12, 2017 |
SPY vs USAI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Pacer American Energy Infrastructure ETF (USAI) is a ETF from Pacer ETFs. Over the past year SPY returned +21.96% while USAI returned +23.47%. Year to date, SPY is up 14.47% versus a gain of 23.98% for USAI.
Over three years, SPY compounded at +21.70% per year against +24.29% for USAI; over five years the annualized figures are +13.30% and +20.71% respectively. Across the full 9-year window we track, USAI has the edge at +11.02% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USAI has been the more volatile fund, with annualized monthly volatility of 28.6% 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 -56.5% for SPY and -69.3% for USAI. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while USAI charges 0.75%. On a $10,000 position that is $9 vs $75 annually, a gap of $66 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.23% for USAI.
Holdings Overlap
SPY and USAI share 6 holdings out of 532 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or USAI?
SPY has an expense ratio of 0.09% while USAI charges 0.75%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, SPY or USAI?
Over the past year SPY returned +21.96% vs +23.47% for USAI, so USAI leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.87% vs +11.02% for USAI. Past performance does not guarantee future results.
Which is riskier, SPY or USAI?
USAI has been the more volatile fund at 28.6% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs USAI -69.3%.
Should I hold both SPY and USAI?
SPY and USAI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and USAI?
SPY and USAI share 6 common holdings with a 0.5% weight overlap. Combined, they hold 532 unique securities.
Which pays a higher dividend, SPY or USAI?
SPY yields 1.01% while USAI yields 4.23%, so USAI currently pays the higher dividend yield.
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