NPFD vs SPY
Nuveen Variable Rate Preferred & Income Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, NPFD or SPY?
Preferred Stock against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | NPFD | SPY |
|---|---|---|
| Expense Ratio | 0.83% | 0.09%Best |
| AUM | - | $804.7B |
| Dividend Yield | 9.88% | 0.98% |
| Holdings | 189 | 505 |
| YTD Return | +3.27% | +12.19%Best |
| 1Y Return | +3.60% | +18.53%Best |
| 3Y Return (annualized) | +15.14% | +20.88%Best |
| 5Y Return (annualized) | - | +12.69% |
| Volatility (annualized) | 16.4% | 15.7%Best |
| Max Drawdown | -39.2% | -24.5%Best |
| $10,000 over 4.7 years | $11,077 | $17,366Best |
| Fund Family | Nuveen | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Dec 15, 2021 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.7 years row, are measured over the window both funds cover: Dec 16, 2021 to Sep 9, 2026 (4.7 years).
NPFD vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.7 years both funds cover.
NPFD vs SPY Performance
Nuveen Variable Rate Preferred & Income Fund (NPFD) is an ETF from Nuveen and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year NPFD returned +3.60% while SPY returned +18.53%. Year to date, NPFD is up 3.27% versus a gain of 12.19% for SPY.
Over three years, NPFD compounded at +15.14% per year against +20.88% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NPFD has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.7% 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 -24.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 9.88% against 0.98% for SPY.
Holdings Overlap
At least 0.5% of SPY's money is in holdings NPFD also owns.
Stated as a floor: for NPFD, our book for it covers 78.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 142 positions we hold weights for in NPFD and 504 in SPY, against full books of 189 and 505.
You are not choosing between two funds in isolation.
Whichever of NPFD and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $74 a year on a $10,000 investment.
Which performed better, NPFD or SPY?
Over the past year NPFD returned +3.60% vs +18.53% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NPFD or SPY?
NPFD has been the more volatile fund at 16.4% annualized versus 15.7% for SPY. Worst drawdown: NPFD -39.2% vs SPY -24.5%.
Should I hold both NPFD and SPY?
NPFD and SPY have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, NPFD or SPY?
NPFD yields 9.88% while SPY yields 0.98%, so NPFD currently pays the higher dividend yield.
Is SPY better than NPFD?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.