NFJ vs SPY
Virtus Dividend, Interest & Premium Strategy Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. NFJ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | NFJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.09% | |
| AUM | $1.5B | $789.1B | |
| Dividend Yield | 7.46% | 1.01% | |
| Holdings | 182 | 505 | |
| YTD Return | +26.35% | +14.47% | |
| 1Y Return | +34.23% | +21.96% | |
| 3Y Return (annualized) | +17.90% | +21.70% | |
| 5Y Return (annualized) | +8.99% | +13.30% | |
| Volatility (annualized) | 17.5% | 15.3% | |
| Max Drawdown | -70.3% | -56.5% | |
| Fund Family | Virtus Investment Partners | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 28, 2005 | Jan 22, 1993 |
NFJ vs SPY Performance
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) is a ETF from Virtus Investment Partners and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NFJ returned +34.23% while SPY returned +21.96%. Year to date, NFJ is up 26.35% versus a gain of 14.47% for SPY.
Over three years, NFJ compounded at +17.90% per year against +21.70% for SPY; over five years the annualized figures are +8.99% and +13.30% respectively. Across the full 22-year window we track, SPY has the edge at +8.87% annualized vs -0.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NFJ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 15.3% for SPY. 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 -70.3% for NFJ 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NFJ charges 0.96% per year while SPY charges 0.09%. On a $10,000 position that is $96 vs $9 annually, a gap of $87 per year that compounds over a long holding period. On income, NFJ currently yields 7.46% against 1.01% for SPY.
Holdings Overlap
NFJ and SPY share 64 holdings out of 592 unique holdings combined, representing a 21.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NFJ or SPY?
NFJ has an expense ratio of 0.96% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, NFJ or SPY?
Over the past year NFJ returned +34.23% vs +21.96% for SPY, so NFJ leads on 1-year performance. Over the longest common window we track (22 years), NFJ annualized -0.08% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, NFJ or SPY?
NFJ has been the more volatile fund at 17.5% annualized versus 15.3% for SPY. Worst drawdown: NFJ -70.3% vs SPY -56.5%.
Should I hold both NFJ and SPY?
NFJ and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFJ and SPY?
NFJ and SPY share 64 common holdings with a 21.1% weight overlap. Combined, they hold 592 unique securities.
Which pays a higher dividend, NFJ or SPY?
NFJ yields 7.46% while SPY yields 1.01%, so NFJ currently pays the higher dividend yield.
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