PABU vs SPY
PABU vs SPY
iShares Paris-Aligned Climate Optimized MSCI USA 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 | PABU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $2.4B | $789.1B | |
| Dividend Yield | 0.93% | 1.01% | |
| Holdings | 97 | 505 | |
| YTD Return | +9.36% | +13.79% | |
| 1Y Return | +16.89% | +23.66% | |
| 3Y Return (annualized) | +18.23% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 16.6% | 15.3% | |
| Max Drawdown | -20.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 8, 2022 | Jan 22, 1993 |
PABU vs SPY Performance
iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PABU returned +16.89% while SPY returned +23.66%. Year to date, PABU is up 9.36% versus a gain of 13.79% for SPY.
Over three years, PABU compounded at +18.23% per year against +21.40% for SPY. Across the full 4-year window we track, PABU has the edge at +12.97% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PABU has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -20.8% for PABU 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PABU charges 0.10% per year while SPY charges 0.09%. On a $10,000 position that is $10 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, PABU currently yields 0.93% against 1.01% for SPY.
Holdings Overlap
PABU and SPY share 79 holdings out of 517 unique holdings combined, representing a 44.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PABU | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 8.59% | 7.31% | 1.28% |
| AAPL | 7.10% | 7.09% | 0.01% |
| MSFT | 5.95% | 4.43% | 1.52% |
| GOOG | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| LLY | Pro | Pro | Pro |
See all 10 holdings PABU shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, PABU or SPY?
PABU has an expense ratio of 0.10% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, PABU or SPY?
Over the past year PABU returned +16.89% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), PABU annualized +12.97% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PABU or SPY?
PABU has been the more volatile fund at 16.6% annualized versus 15.3% for SPY. Worst drawdown: PABU -20.8% vs SPY -56.5%.
Should I hold both PABU and SPY?
PABU and SPY have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between PABU and SPY?
PABU and SPY share 79 common holdings with a 44.1% weight overlap. Combined, they hold 517 unique securities.
Which pays a higher dividend, PABU or SPY?
PABU yields 0.93% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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