PAB vs SPY
PAB vs SPY
PGIM Active Aggregate 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. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PAB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.09% | |
| AUM | $70M | $789.1B | |
| Dividend Yield | 5.30% | 1.01% | |
| Holdings | 522 | 505 | |
| YTD Return | -0.39% | +9.93% | |
| 1Y Return | +3.04% | +19.50% | |
| 3Y Return (annualized) | +4.39% | +19.33% | |
| 5Y Return (annualized) | -0.38% | +12.82% | |
| Volatility (annualized) | 6.5% | 15.3% | |
| Max Drawdown | -19.3% | -56.5% | |
| Fund Family | PGIM Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 12, 2021 | Jan 22, 1993 |
PAB vs SPY Performance
PGIM Active Aggregate Bond ETF (PAB) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PAB returned +3.04% while SPY returned +19.50%. Year to date, PAB is down 0.39% versus a gain of 9.93% for SPY.
Over three years, PAB compounded at +4.39% per year against +19.33% for SPY; over five years the annualized figures are -0.38% and +12.82% respectively. Across the full 5-year window we track, SPY has the edge at +8.74% annualized vs +0.08%. 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 6.5% for PAB. 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 -19.3% for PAB 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAB charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, PAB currently yields 5.30% against 1.01% for SPY.
Holdings Overlap
PAB and SPY share 0 holdings out of 913 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, PAB or SPY?
PAB has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, PAB or SPY?
Over the past year PAB returned +3.04% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), PAB annualized +0.08% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, PAB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.5% for PAB. Worst drawdown: PAB -19.3% vs SPY -56.5%.
Should I hold both PAB and SPY?
PAB and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAB and SPY?
PAB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 913 unique securities.
Which pays a higher dividend, PAB or SPY?
PAB yields 5.30% while SPY yields 1.01%, so PAB currently pays the higher dividend yield.
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