FPF vs SPY
First Trust Intermediate Duration Preferred & Income 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 | FPF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.78% | 0.09% | |
| AUM | $1.8B | $789.1B | |
| Dividend Yield | 8.64% | 1.01% | |
| Holdings | 230 | 505 | |
| YTD Return | -0.90% | +13.79% | |
| 1Y Return | +1.62% | +23.66% | |
| 3Y Return (annualized) | +14.14% | +21.40% | |
| 5Y Return (annualized) | +0.65% | +13.37% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -54.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | May 24, 2013 | Jan 22, 1993 |
FPF vs SPY Performance
First Trust Intermediate Duration Preferred & Income Fund (FPF) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FPF returned +1.62% while SPY returned +23.66%. Year to date, FPF is down 0.90% versus a gain of 13.79% for SPY.
Over three years, FPF compounded at +14.14% per year against +21.40% for SPY; over five years the annualized figures are +0.65% and +13.37% respectively. Across the full 13-year window we track, SPY has the edge at +8.85% annualized vs +0.73%. 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 14.9% for FPF. 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 -54.6% for FPF 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPF charges 1.78% per year while SPY charges 0.09%. On a $10,000 position that is $178 vs $9 annually, a gap of $169 per year that compounds over a long holding period. On income, FPF currently yields 8.64% against 1.01% for SPY.
Holdings Overlap
FPF and SPY share 6 holdings out of 667 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPF or SPY?
FPF has an expense ratio of 1.78% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $169 per year of difference.
Which performed better, FPF or SPY?
Over the past year FPF returned +1.62% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), FPF annualized +0.73% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FPF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for FPF. Worst drawdown: FPF -54.6% vs SPY -56.5%.
Should I hold both FPF and SPY?
FPF and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPF and SPY?
FPF and SPY share 6 common holdings with a 0.8% weight overlap. Combined, they hold 667 unique securities.
Which pays a higher dividend, FPF or SPY?
FPF yields 8.64% while SPY yields 1.01%, so FPF currently pays the higher dividend yield.
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