MRCP vs SPY

MRCP vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMRCPSPYWinner
Expense Ratio0.50%0.09%
AUM$26M$821.1B
Dividend Yield0.00%1.01%
Holdings7505
YTD Return+9.04%+12.22%
1Y Return+14.72%+20.83%
3Y Return (annualized)-+21.70%
5Y Return (annualized)-+12.98%
Volatility (annualized)6.6%15.3%
Max Drawdown-10.7%-56.5%
Fund FamilyPGIM InvestmentsState Street Investment Management
CategoryAlternativeEquity
InceptionFeb 29, 2024Jan 22, 1993

MRCP vs SPY Performance

PGIM S&P 500 Buffer 12 ETF - March (MRCP) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MRCP returned +14.72% while SPY returned +20.83%. Year to date, MRCP is up 9.04% versus a gain of 12.22% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 6.6% for MRCP. 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 -10.7% for MRCP 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

MRCP charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, MRCP currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, MRCP or SPY?

MRCP has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, MRCP or SPY?

Over the past year MRCP returned +14.72% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), MRCP annualized +14.22% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, MRCP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.6% for MRCP. Worst drawdown: MRCP -10.7% vs SPY -56.5%.

Should I hold both MRCP and SPY?

MRCP and SPY have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, MRCP or SPY?

MRCP yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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