FPFD vs SPY
Fidelity Preferred Securities & Income 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 505 holdings.
Side-by-Side Comparison
| Metric | FPFD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.09% | |
| AUM | $81M | $821.1B | |
| Dividend Yield | 5.81% | 1.01% | |
| Holdings | 333 | 505 | |
| YTD Return | -3.04% | +14.24% | |
| 1Y Return | -1.09% | +21.71% | |
| 3Y Return (annualized) | +5.71% | +22.10% | |
| 5Y Return (annualized) | +0.63% | +13.21% | |
| Volatility (annualized) | 8.4% | 15.3% | |
| Max Drawdown | -20.8% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 15, 2021 | Jan 22, 1993 |
FPFD vs SPY Performance
Fidelity Preferred Securities & Income ETF (FPFD) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FPFD returned -1.09% while SPY returned +21.71%. Year to date, FPFD is down 3.04% versus a gain of 14.24% for SPY.
Over three years, FPFD compounded at +5.71% per year against +22.10% for SPY; over five years the annualized figures are +0.63% and +13.21% respectively. Across the full 5-year window we track, SPY has the edge at +8.86% annualized vs +0.91%. 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 8.4% for FPFD. 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 FPFD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPFD charges 0.59% per year while SPY charges 0.09%. On a $10,000 position that is $59 vs $9 annually, a gap of $50 per year that compounds over a long holding period. On income, FPFD currently yields 5.81% against 1.01% for SPY.
Holdings Overlap
FPFD and SPY share 24 holdings out of 559 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPFD or SPY?
FPFD has an expense ratio of 0.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, FPFD or SPY?
Over the past year FPFD returned -1.09% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), FPFD annualized +0.91% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, FPFD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.4% for FPFD. Worst drawdown: FPFD -20.8% vs SPY -56.5%.
Should I hold both FPFD and SPY?
FPFD and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPFD and SPY?
FPFD and SPY share 24 common holdings with a 4.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, FPFD or SPY?
FPFD yields 5.81% while SPY yields 1.01%, so FPFD currently pays the higher dividend yield.
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