LDP vs SPY
Cohen & Steers Limited Duration Preferred and Income Fund Inc. 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 | LDP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.55% | 0.09% | |
| AUM | $2,693.25 | $789.1B | |
| Dividend Yield | 7.03% | 1.01% | |
| Holdings | 286 | 505 | |
| YTD Return | +1.10% | +13.39% | |
| 1Y Return | +3.58% | +22.52% | |
| 3Y Return (annualized) | +12.41% | +21.36% | |
| 5Y Return (annualized) | +2.59% | +13.19% | |
| Volatility (annualized) | 13.7% | 15.3% | |
| Max Drawdown | -50.2% | -56.5% | |
| Fund Family | Cohen & Steers Funds | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jul 27, 2012 | Jan 22, 1993 |
LDP vs SPY Performance
Cohen & Steers Limited Duration Preferred and Income Fund Inc. (LDP) is a ETF from Cohen & Steers Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LDP returned +3.58% while SPY returned +22.52%. Year to date, LDP is up 1.10% versus a gain of 13.39% for SPY.
Over three years, LDP compounded at +12.41% per year against +21.36% for SPY; over five years the annualized figures are +2.59% and +13.19% respectively. Across the full 14-year window we track, SPY has the edge at +8.84% annualized vs +1.72%. 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 13.7% for LDP. 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 -50.2% for LDP 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LDP charges 1.55% per year while SPY charges 0.09%. On a $10,000 position that is $155 vs $9 annually, a gap of $146 per year that compounds over a long holding period. On income, LDP currently yields 7.03% against 1.01% for SPY.
Holdings Overlap
LDP and SPY share 4 holdings out of 654 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LDP or SPY?
LDP has an expense ratio of 1.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $146 per year of difference.
Which performed better, LDP or SPY?
Over the past year LDP returned +3.58% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), LDP annualized +1.72% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, LDP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.7% for LDP. Worst drawdown: LDP -50.2% vs SPY -56.5%.
Should I hold both LDP and SPY?
LDP and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LDP and SPY?
LDP and SPY share 4 common holdings with a 0.7% weight overlap. Combined, they hold 654 unique securities.
Which pays a higher dividend, LDP or SPY?
LDP yields 7.03% while SPY yields 1.01%, so LDP currently pays the higher dividend yield.
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