PMBS vs SPY
PMBS vs SPY
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund 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 | PMBS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.09% | |
| AUM | $1.4B | $789.1B | |
| Dividend Yield | 4.97% | 1.01% | |
| Holdings | 1,126 | 505 | |
| YTD Return | -0.04% | +9.93% | |
| 1Y Return | +4.49% | +19.50% | |
| 3Y Return (annualized) | - | +19.33% | |
| 5Y Return (annualized) | - | +12.82% | |
| Volatility (annualized) | 4.5% | 15.3% | |
| Max Drawdown | -3.1% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2024 | Jan 22, 1993 |
PMBS vs SPY Performance
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) 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 PMBS returned +4.49% while SPY returned +19.50%. Year to date, PMBS is down 0.04% versus a gain of 9.93% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.5% for PMBS. 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 -3.1% for PMBS 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMBS charges 0.71% per year while SPY charges 0.09%. On a $10,000 position that is $71 vs $9 annually, a gap of $62 per year that compounds over a long holding period. On income, PMBS currently yields 4.97% against 1.01% for SPY.
Holdings Overlap
PMBS and SPY share 0 holdings out of 646 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, PMBS or SPY?
PMBS has an expense ratio of 0.71% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, PMBS or SPY?
Over the past year PMBS returned +4.49% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), PMBS annualized +5.02% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, PMBS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.5% for PMBS. Worst drawdown: PMBS -3.1% vs SPY -56.5%.
Should I hold both PMBS and SPY?
PMBS and SPY have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMBS and SPY?
PMBS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.
Which pays a higher dividend, PMBS or SPY?
PMBS yields 4.97% while SPY yields 1.01%, so PMBS currently pays the higher dividend yield.
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