NPFD vs SPY
Nuveen Variable Rate 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 | NPFD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.83% | 0.09% | |
| AUM | - | $789.1B | |
| Dividend Yield | 9.84% | 1.01% | |
| Holdings | 189 | 505 | |
| YTD Return | +4.03% | +13.39% | |
| 1Y Return | +5.86% | +22.52% | |
| 3Y Return (annualized) | +15.20% | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 16.5% | 15.3% | |
| Max Drawdown | -39.2% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 15, 2021 | Jan 22, 1993 |
NPFD vs SPY Performance
Nuveen Variable Rate Preferred & Income Fund (NPFD) is a ETF from Nuveen and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NPFD returned +5.86% while SPY returned +22.52%. Year to date, NPFD is up 4.03% versus a gain of 13.39% for SPY.
Over three years, NPFD compounded at +15.20% per year against +21.36% for SPY. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs +2.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NPFD has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -39.2% for NPFD 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NPFD charges 0.83% per year while SPY charges 0.09%. On a $10,000 position that is $83 vs $9 annually, a gap of $74 per year that compounds over a long holding period. On income, NPFD currently yields 9.84% against 1.01% for SPY.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, NPFD or SPY?
NPFD has an expense ratio of 0.83% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, NPFD or SPY?
Over the past year NPFD returned +5.86% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), NPFD annualized +2.40% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, NPFD or SPY?
NPFD has been the more volatile fund at 16.5% annualized versus 15.3% for SPY. Worst drawdown: NPFD -39.2% vs SPY -56.5%.
Should I hold both NPFD and SPY?
NPFD and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NPFD and SPY?
NPFD and SPY share 2 common holdings with a 0.5% weight overlap. Combined, they hold 651 unique securities.
Which pays a higher dividend, NPFD or SPY?
NPFD yields 9.84% while SPY yields 1.01%, so NPFD currently pays the higher dividend yield.
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