# How Parker-Hannifin (PH) compares with the whole market and its popular alternatives

> Source: BetterThanSPY research, https://betterthanspy.com/research/ph
> Data as of October 22, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on PH alone. It places PH (Parker-Hannifin Corporation) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where PH stands in the market, and of the alternatives worth a closer look.

Period covered: PH's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 22, 2026.

## Key findings

- **Right now:** PH has gone against the market, falling 6.0% over the past 6 months while the S&P 500 rose 8.0%. Its industrial machinery peers split over the past 6 months: DHR (Danaher) rose 25.3%, while HWM (Howmet Aerospace) fell 19.7%.
- **Stock or market?:** PH's 7.8% fall over the past 3 months is part of a broader industrial machinery sell-off: the industrial machinery ETF XLI (State Street Industrial Select Sector SPDR ETF) fell 6.5%, with ETN (Eaton, down 9.1%) and HWM (Howmet Aerospace, down 31.1%). Its industrial machinery peers did not move as one over the past 3 months: DHR (Danaher) rose 28.5%, while HWM fell 31.1%.
- **Past 1 to 3 years:** Over the past year, PH rose 21.5% against 15.6% for the S&P 500 and 16.9% for the Nasdaq 100. The same gap shows up over 3 years (151% against 88.4%). The last two calendar years both went the same way: PH rose 39.5% in 2025, against 15.6% for the S&P 500 and 16.9% for the Nasdaq 100.
- **Long term:** PH turned $10,000 into $85,500 over the past decade, against $41,600 in the S&P 500. PH's 10-year return of 755% puts it ahead of 93% of the stocks worth at least $300 million with that much history. The S&P 500 returned 316%.
- **In a crash:** Across seven sell-offs, PH has typically fallen 1.4 times as far as the S&P 500. In the Covid crash, PH fell 54.7%, against 33.7% for the S&P 500. That was more than DHR (Danaher, 25.9%) but less than HWM (Howmet Aerospace, 64.8%).
- **Diversification:** PH is more of the same, not a cushion: a correlation of 0.64 with the S&P 500 over 5 years and 0.67 with the total US market, more closely than 94% of stocks worth at least $300 million.
- **Better options**
  - **Popular alternatives:** CW (Curtiss-Wright) earned more than PH over the past 5 years with similar volatility: 29.5% a year at 28.8% volatility, against 26.0% a year at 28.9%.
  - **Nearby categories and themes:** GWW (W.W. Grainger, industrial distribution) earned more for the risk it took than PH over the past 5 years, and its worst fall in 10 years was 41.6%, against 54.7% for PH.
  - **Whole market:** Few investments have done better on both counts: only eight of the 3,641 stocks and funds worth at least $500 million earned more than PH with less volatility over the past 5 years, among them XOM (Exxonmobil), HSBC and MCK (McKesson).

## How much would $10,000 in PH have grown?

This chart tracks a hypothetical $10,000 investment in PH over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of PH over the same span and PH's popular alternatives, among those that traded for the entire period.

- $10,000 invested in PH at the end of September 1997 would have grown to $505,227 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of PH, and ROK finished highest, at $1,295,740.

## PH at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- PH's deepest decline since it began trading in 1986 was 66.9%, from May 2008 to March 2009. It took 20 months from the low to climb back to its old high.
- Over 29 full calendar years, PH's best was 1997, when it returned 80.1%, and its worst was 2008, when it lost 42.6%. It lost money in eight of those years.
- PH is 16.7% below its all-time high.

- Type: Stock, Industrials (Industrial - Machinery)
- Trading since: October 17, 1986
- Market value: $113B
- Volatility (5 years): 28.9%; Sharpe ratio: 0.95
- Worst decline ever: −66.9%, from May 13, 2008 to March 9, 2009; back at its high by November 24, 2010

| Period | PH total return |
| --- | --- |
| 1 month | −7.4% |
| 3 months | −7.8% |
| 6 months | −6.0% |
| year to date | +0.5% |
| 1 year | +21.5% |
| 3 years | +151% |
| 5 years | +218% |
| 10 years | +755% |

## PH against the whole market

Where PH ranks among every stock and fund, and what across the market has done better.

### How does PH rank among all stocks?

This section ranks PH on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- On return for the risk taken (the Sharpe ratio), PH ranks in the top 4% of the 2,897 stocks worth at least $300 million.

| Measure | PH | Rank |
| --- | --- | --- |
| 1-year return | +21.5% | 1,226 of 3,282 (top 38%) |
| 3-year return | +151% | 590 of 3,016 (top 20%) |
| 5-year return | +218% | 269 of 2,897 (top 10%) |
| 10-year return | +755% | 164 of 2,201 (top 8%) |
| Volatility, 5 years | 28.9% | 635 of 2,897 (top 22%) |
| Sharpe ratio, 5 years | 0.95 | 128 of 2,897 (top 5%) |
| Worst decline, past 10 years | −54.7% | 652 of 2,184 (top 30%) |

### What has beaten PH on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- Seven stocks and one ETF worth at least $500 million sit in the green region: each earned more than PH over the past 5 years with smaller price swings. That is fewer than 1% of the 3,641 screened. Few investments beat it on both counts.
- Among those with at least half PH's swings, CAH has the best return for its risk: 41.7% a year at 24.7% volatility, 15% less than PH's 28.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.54 against 0.95 for PH.

### Is there a better investment than PH?

The table below lists investments that beat PH over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among PH's popular alternatives, CW earned more than PH over the past 5 years with similar volatility: 29.5% a year at 28.8% volatility, against 26.0% a year at 28.9%.
- Looking beyond its popular alternatives, GWW (industrial distribution) earned more for the risk it took than PH over the past 5 years, and its worst fall in 10 years was 41.6%, against 54.7% for PH.
- Few investments have done better on both counts: only eight of the 3,641 stocks and funds worth at least $500 million earned more than PH with less volatility over the past 5 years, among them XOM, HSBC and MCK.

The 8 strongest of 8 investments that beat PH over the past 5 years, out of 3,641 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with PH | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| PH: Parker-Hannifin Corporation (this page) |  | +26.0% | 28.9% | 0.95 | −54.7% | +755% |  |  |
| [CAH](https://betterthanspy.com/research/cah): Cardinal Health, Inc. | Health Care Distribution | +41.7% | 24.7% | 1.54 | −46.1% | +345% | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [HSBC](https://betterthanspy.com/research/hsbc): HSBC Holdings plc | Banks | +32.8% | 25.9% | 1.23 | −62.3% | +314% | 0.25 | Higher return, lower volatility; Higher return in most periods |
| [MCK](https://betterthanspy.com/research/mck): McKesson Corporation | Health Care Distribution | +37.8% | 25.1% | 1.41 | −38.1% | +582% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| BLX: Bladex, Inc. | Banks | +31.0% | 25.9% | 1.18 | −68.5% | +278% | 0.57 | Higher return, lower volatility; Higher return in most periods |
| EPU: iShares MSCI Peru and Global Exposure ETF | International Equity | +28.1% | 24.9% | 1.12 | −51.0% | +258% | 0.35 | Higher return, lower volatility; Higher return in most periods |
| [XOM](https://betterthanspy.com/research/xom): Exxonmobil Holdings Corporation | Integrated Oil & Gas | +27.5% | 26.5% | 1.05 | −61.0% | +216% | 0.23 | Higher return, lower volatility |
| PAA: Plains All American Pipeline, L.P. | Oil & Gas Midstream | +28.4% | 25.6% | 1.11 | −87.9% | +66.5% | 0.48 | Higher return, lower volatility |
| PAGP: Plains GP Holdings LP | Oil & Gas Midstream | +27.8% | 26.0% | 1.08 | −88.0% | +60.3% | 0.48 | Higher return, lower volatility |

## PH against its popular alternatives

The investments people most often weigh against PH, compared period by period and year by year.

### How do PH's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only CW was both more rewarding and calmer than PH over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, PH returned 26.0% a year, more than the S&P 500's 12.5%, with higher volatility (28.9% against 17.2%).

### Has PH consistently beaten its popular alternatives?

This section compares PH with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- None of the 25 popular alternatives outperformed PH in at least 3 of 5 short-term and 2 of 3 long-term timeframes. The closest was CAT.
- CW and CAT earned more for the risk they took than PH (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
- HWM outperformed PH over all three long-term periods but in none of the five short-term ones, so PH has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of PH | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| PH: Parker-Hannifin Corporation (this page) | +21.5% | +151% | +218% | +755% |  |  | 0.95 |
| [CAT](https://betterthanspy.com/research/cat): Caterpillar Inc. | +38.1% | +196% | +281% | +913% | 2/5 short-term, 3/3 long-term |  | 1.00 |
| [HWM](https://betterthanspy.com/research/hwm): Howmet Aerospace Inc. | +1.3% | +348% | +544% | +928% | 0/5 short-term, 3/3 long-term |  | 1.31 |
| [RTX](https://betterthanspy.com/research/rtx): RTX Corporation | +11.0% | +183% | +136% | +319% | 4/5 short-term, 1/3 long-term |  | 0.83 |
| CW: Curtiss-Wright Corporation | −11.4% | +139% | +264% | +486% | 0/5 short-term, 1/3 long-term |  | 1.05 |
| [AME](https://betterthanspy.com/research/ame): AMETEK, Inc. | +29.9% | +72.8% | +88.1% | +466% | 5/5 short-term, 0/3 long-term |  | 0.68 |
| [ROK](https://betterthanspy.com/research/rok): Rockwell Automation, Inc. | +22.6% | +66.9% | +45.7% | +325% | 5/5 short-term, 0/3 long-term |  | 0.40 |
| [EMR](https://betterthanspy.com/research/emr): Emerson Electric Co. | +25.1% | +87.4% | +83.1% | +307% | 5/5 short-term, 0/3 long-term |  | 0.58 |
| NDSN: Nordson Corporation | +37.8% | +55.4% | +33.1% | +251% | 5/5 short-term, 0/3 long-term |  | 0.35 |
| IEX: IDEX Corporation | +38.3% | +22.6% | +9.5% | +196% | 5/5 short-term, 0/3 long-term |  | 0.20 |
| SWK: Stanley Black & Decker, Inc. | +49.1% | +42.9% | −36.8% | +7.9% | 5/5 short-term, 0/3 long-term |  | -0.05 |
| [DE](https://betterthanspy.com/research/de): Deere & Company | +40.8% | +79.5% | +102% | +764% | 4/5 short-term, 0/3 long-term |  | 0.62 |
| TKR: The Timken Company | +44.9% | +65.2% | +63.9% | +283% | 4/5 short-term, 0/3 long-term |  | 0.47 |
| [ITW](https://betterthanspy.com/research/itw): Illinois Tool Works Inc. | +13.2% | +34.9% | +40.0% | +213% | 4/5 short-term, 0/3 long-term |  | 0.42 |
| [HON](https://betterthanspy.com/research/hon): Honeywell International Inc. | +9.0% | +30.5% | +13.2% | +163% | 4/5 short-term, 0/3 long-term |  | 0.22 |
| [DHR](https://betterthanspy.com/research/dhr): Danaher Corporation | +6.1% | +14.6% | −15.2% | +240% | 3/5 short-term, 0/3 long-term |  | 0.03 |
| AOS: A. O. Smith Corporation | −6.4% | −0.3% | +2.8% | +53.5% | 3/5 short-term, 0/3 long-term |  | 0.16 |
| ITT: ITT Inc. | +10.2% | +107% | +110% | +509% | 2/5 short-term, 0/3 long-term |  | 0.65 |
| RRX: Regal Rexnord Corporation | +6.2% | +28.4% | +3.7% | +196% | 2/5 short-term, 0/3 long-term |  | 0.23 |
| XYL: Xylem Inc. | −24.1% | +26.5% | −9.7% | +154% | 2/5 short-term, 0/3 long-term |  | 0.06 |
| FLS: Flowserve Corporation | +32.4% | +94.4% | +101% | +89.6% | 2/5 short-term, 0/3 long-term |  | 0.56 |
| [ETN](https://betterthanspy.com/research/etn): Eaton Corporation plc | +3.5% | +96.0% | +146% | +636% | 1/5 short-term, 0/3 long-term |  | 0.72 |
| DOV: Dover Corporation | +17.8% | +51.0% | +22.9% | +312% | 1/5 short-term, 0/3 long-term |  | 0.29 |
| GGG: Graco Inc. | −13.9% | +2.9% | −2.1% | +212% | 1/5 short-term, 0/3 long-term |  | 0.10 |
| [BA](https://betterthanspy.com/research/ba): The Boeing Company | −13.4% | +3.6% | −11.9% | +48.3% | 1/5 short-term, 0/3 long-term |  | 0.11 |
| IR: Ingersoll Rand Inc. | −5.0% | +25.3% | +37.6% | — | 1/5 short-term, 0/3 long-term |  | 0.36 |

### How did PH do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where PH ranked among its popular alternatives each year.

- PH finished ahead of the S&P 500 in 19 of its 29 full calendar years, and ahead of it in each of the last four.
- Ranked against its popular alternatives each year, PH finished in the top quarter in nine of 29 years and in the bottom quarter in four. In 2025, it ranked 5 of 26.
- Among its popular alternatives, DHR came out ahead of PH most often, in 17 of the 29 years both traded.

| Year | PH | SPY |
| --- | --- | --- |
| 2025 | +39.5% | +17.7% |
| 2024 | +39.6% | +24.9% |
| 2023 | +60.8% | +26.2% |
| 2022 | −6.9% | −18.2% |
| 2021 | +18.3% | +28.7% |
| 2020 | +34.8% | +18.3% |
| 2019 | +40.7% | +31.2% |
| 2018 | −24.0% | −4.6% |
| 2017 | +44.3% | +21.7% |
| 2016 | +47.6% | +12.0% |

## Risk and diversification

How PH has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were PH's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of PH's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: PH fell 38.3% from January to August 2000, while the S&P 500 rose 0.4%.
- The slowest recovery came after PH fell 57.6% from October 1987 to October 1990; it did not regain that peak until April 1994, four years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −66.9% | May 13, 2008 | March 9, 2009 | November 24, 2010 | −50.6% | 2008 financial crisis |
| −57.6% | October 2, 1987 | October 17, 1990 | April 15, 1994 | — |  |
| −54.7% | February 20, 2020 | March 23, 2020 | September 2, 2020 | −33.4% | Covid crash |
| −47.3% | April 2, 1998 | September 18, 1998 | December 31, 1999 | −8.3% |  |
| −38.3% | January 7, 2000 | August 3, 2000 | February 25, 2002 | +0.4% | dot-com bust |

### How did PH do in stock market crashes?

This section measures how far PH, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- PH fell further than the S&P 500 in nine of the ten crashes it has traded through. The clearest case was the Covid crash, when PH fell 54.7% and the S&P 500 fell 33.7%.
- Among its popular alternatives, AME held up best, falling less than PH in nine of the ten crashes they both traded through.

| Crash | Dates | PH fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −36.5% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −66.9% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −3.5% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −30.4% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −23.7% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −8.1% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −25.6% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −54.7% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −27.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −8.4% | −3.4% |

### How closely does PH move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, PH captured 141% of the S&P 500's gains in rising months and 126% of its losses in falling months, with a beta of 1.43. It amplified the market's moves in both directions.
- ETN took just 80% of the S&P 500's losses, against 126% for PH, while still keeping 114% of its gains.
- Five of the 24 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than PH's 1.11, led by DE, ETN and CW.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| PH: Parker-Hannifin Corporation (this page) | 141% | 126% | 1.43 |
| [CAT](https://betterthanspy.com/research/cat): Caterpillar Inc. | 148% | 122% | 1.27 |
| [HWM](https://betterthanspy.com/research/hwm): Howmet Aerospace Inc. | 142% | 115% | 1.41 |
| [RTX](https://betterthanspy.com/research/rtx): RTX Corporation | 94.0% | 91.0% | 0.89 |
| CW: Curtiss-Wright Corporation | 103% | 77.0% | 1.20 |
| [AME](https://betterthanspy.com/research/ame): AMETEK, Inc. | 111% | 101% | 1.15 |
| [ROK](https://betterthanspy.com/research/rok): Rockwell Automation, Inc. | 122% | 138% | 1.46 |
| [EMR](https://betterthanspy.com/research/emr): Emerson Electric Co. | 124% | 153% | 1.39 |
| NDSN: Nordson Corporation | 102% | 112% | 0.98 |
| IEX: IDEX Corporation | 97.0% | 121% | 1.03 |
| SWK: Stanley Black & Decker, Inc. | 101% | 198% | 1.30 |
| [DE](https://betterthanspy.com/research/de): Deere & Company | 110% | 66.0% | 0.98 |
| TKR: The Timken Company | 123% | 145% | 1.45 |
| [ITW](https://betterthanspy.com/research/itw): Illinois Tool Works Inc. | 94.0% | 116% | 1.04 |
| [HON](https://betterthanspy.com/research/hon): Honeywell International Inc. | 90.0% | 118% | 1.00 |
| [DHR](https://betterthanspy.com/research/dhr): Danaher Corporation | 84.0% | 84.0% | 0.75 |
| AOS: A. O. Smith Corporation | 82.0% | 139% | 1.12 |
| ITT: ITT Inc. | 135% | 138% | 1.42 |
| RRX: Regal Rexnord Corporation | 95.0% | 110% | 1.18 |
| XYL: Xylem Inc. | 90.0% | 123% | 1.03 |
| FLS: Flowserve Corporation | 119% | 188% | 1.49 |
| [ETN](https://betterthanspy.com/research/etn): Eaton Corporation plc | 114% | 80.0% | 1.16 |
| DOV: Dover Corporation | 114% | 133% | 1.27 |
| GGG: Graco Inc. | 90.0% | 92.0% | 0.78 |
| [BA](https://betterthanspy.com/research/ba): The Boeing Company | 93.0% | 152% | 1.42 |

### What diversifies PH?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in PH into DXJ would have cut the portfolio's volatility by 15% over the past 5 years while keeping its annual return (+29.5% for PH alone, +29.5% for the mix).
- CAH made money in six of the eight calendar years in which PH lost money.
- Among large ETFs, DXJ, SMH and XLE have moved largely independently of PH over the past 5 years, with correlations of 0.44 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with PH | 5Y return | Volatility | Sharpe | Rose in PH's 8 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.44 | +225% | 19.1% | 1.34 | 2 of 8 |
| [SMH](https://betterthanspy.com/research/smh): VanEck Semiconductor ETF | 0.40 | +304% | 37.0% | 0.94 | 2 of 8 |
| [XLE](https://betterthanspy.com/research/xle): State Street Energy Select Sector SPDR ETF | 0.32 | +178% | 25.5% | 0.94 | 4 of 8 |
| [GLD](https://betterthanspy.com/research/gld): SPDR Gold Shares | 0.03 | +120% | 19.0% | 0.93 | 3 of 8 |
| EWT: iShares MSCI Taiwan ETF | 0.29 | +147% | 24.3% | 0.87 | 1 of 8 |
| IDV: iShares International Select Dividend ETF | 0.44 | +81.7% | 15.5% | 0.85 | 0 of 8 |
| EDIV: State Street SPDR S&P Emerging Markets Dividend ETF | 0.39 | +69.0% | 13.8% | 0.83 | 0 of 8 |
| TDIV: First Trust NASDAQ Technology Dividend Index Fund | 0.44 | +115% | 21.3% | 0.83 | 0 of 8 |

## Common questions

### What was PH's worst drawdown?

PH's deepest decline since it began trading in 1986 was 66.9%, from May 2008 to March 2009. It took 20 months from the low to climb back to its old high.

### What were PH's best and worst years?

Over 29 full calendar years, PH's best year was 1997, when it returned 80.1%. Its worst was 2008, with a return of -42.6%.

### Is there a better investment than PH?

Among PH's popular alternatives, CW earned more than PH over the past 5 years with similar volatility: 29.5% a year at 28.8% volatility, against 26.0% a year at 28.9%. Looking beyond its popular alternatives, GWW (industrial distribution) earned more for the risk it took than PH over the past 5 years, and its worst fall in 10 years was 41.6%, against 54.7% for PH.

### Is PH more volatile than the S&P 500?

Yes. PH's volatility over the past 5 years was 28.9%, 1.7 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, PH's return lands within 28.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is PH's Sharpe ratio?

PH's Sharpe ratio over the past 5 years was 0.95, against 0.78 for the S&P 500, so PH earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is PH with the S&P 500?

Over the past 5 years, PH's monthly returns had a correlation of 0.64 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against PH instead: the lower it is, the more that option would diversify a PH holding.

### What are the best alternatives to PH?

None of the 25 popular alternatives we compared outperformed PH in at least 3 of 5 short-term and 2 of 3 long-term timeframes, which says more about PH's strength than about its alternatives.

### Did PH outperform the S&P 500?

PH finished ahead of the S&P 500 (SPY) in 19 of 29 full calendar years. In 2025, it returned +39.5%, against +17.7% for the index.

### How did PH do in stock market crashes?

PH fell less than the S&P 500 (SPY) in one of the ten major crashes it has traded through, and further in nine. The clearest case was the Covid crash, when PH fell 54.7% and the S&P 500 fell 33.7%.

### What diversifies PH?

These had a low correlation with PH over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.44), SMH (correlation 0.40) and XLE (correlation 0.32); among large stocks, CAH (correlation 0.46), CLS (correlation 0.37) and MCK (correlation 0.27). A correlation near zero means the two have moved largely independently.

## More research

- [Caterpillar (CAT) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/cat)
- [Howmet Aerospace (HWM) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/hwm)
- [RTX Performance, Alternatives and Market Rank](https://betterthanspy.com/research/rtx)
- [AMETEK (AME) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/ame)
- [Rockwell Automation (ROK) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/rok)
- [Emerson Electric (EMR) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/emr)
- [Deere & Company (DE) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/de)
- [Illinois Tool Works (ITW) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/itw)
- [Honeywell International (HON) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/hon)
- [Danaher (DHR) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/dhr)
- [Eaton (ETN) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/etn)
- [Boeing (BA) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/ba)

## Explore further

- Full page with charts: https://betterthanspy.com/research/ph
- All research pages: https://betterthanspy.com/llms.txt
- Compare the entire market against PH live: https://betterthanspy.com/?b=PH