PPT vs SPY
PPT vs SPY
Putnam Premier Income Trust 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 | PPT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.93% | 0.09% | |
| AUM | $1,660.6 | $789.1B | |
| Dividend Yield | 8.41% | 1.01% | |
| Holdings | 766 | 505 | |
| YTD Return | +1.77% | +13.50% | |
| 1Y Return | +2.31% | +23.56% | |
| 3Y Return (annualized) | +7.04% | +21.17% | |
| 5Y Return (annualized) | +2.57% | +13.46% | |
| Volatility (annualized) | 11.5% | 15.3% | |
| Max Drawdown | -65.9% | -56.5% | |
| Fund Family | Putnam Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 29, 1988 | Jan 22, 1993 |
PPT vs SPY Performance
Putnam Premier Income Trust (PPT) is a ETF from Putnam Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PPT returned +2.31% while SPY returned +23.56%. Year to date, PPT is up 1.77% versus a gain of 13.50% for SPY.
Over three years, PPT compounded at +7.04% per year against +21.17% for SPY; over five years the annualized figures are +2.57% and +13.46% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs -1.14%. 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 11.5% for PPT. 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 -65.9% for PPT 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PPT charges 0.93% per year while SPY charges 0.09%. On a $10,000 position that is $93 vs $9 annually, a gap of $84 per year that compounds over a long holding period. On income, PPT currently yields 8.41% against 1.01% for SPY.
Holdings Overlap
PPT and SPY share 0 holdings out of 507 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, PPT or SPY?
PPT has an expense ratio of 0.93% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, PPT or SPY?
Over the past year PPT returned +2.31% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PPT annualized -1.14% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PPT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.5% for PPT. Worst drawdown: PPT -65.9% vs SPY -56.5%.
Should I hold both PPT and SPY?
PPT and SPY have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPT and SPY?
PPT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, PPT or SPY?
PPT yields 8.41% while SPY yields 1.01%, so PPT currently pays the higher dividend yield.
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