PFD vs SPY
Flaherty & Crumrine Preferred Income Fund Inc vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PFD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | - | 0.09% | |
| AUM | $159M | $789.1B | |
| Dividend Yield | 6.46% | 1.01% | |
| Holdings | 245 | 505 | |
| YTD Return | -0.93% | +13.75% | |
| 1Y Return | +6.02% | +22.91% | |
| 3Y Return (annualized) | +11.16% | +21.67% | |
| 5Y Return (annualized) | -0.80% | +13.32% | |
| Volatility (annualized) | 19.6% | 15.3% | |
| Max Drawdown | -85.8% | -56.5% | |
| Fund Family | Flaherty & Crumrine | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 31, 1991 | Jan 22, 1993 |
PFD vs SPY Performance
Flaherty & Crumrine Preferred Income Fund Inc (PFD) is a ETF from Flaherty & Crumrine and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PFD returned +6.02% while SPY returned +22.91%. Year to date, PFD is down 0.93% versus a gain of 13.75% for SPY.
Over three years, PFD compounded at +11.16% per year against +21.67% for SPY; over five years the annualized figures are -0.80% and +13.32% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs +0.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFD has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -85.8% for PFD 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Holdings Overlap
PFD and SPY share 6 holdings out of 677 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which performed better, PFD or SPY?
Over the past year PFD returned +6.02% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PFD annualized +0.59% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PFD or SPY?
PFD has been the more volatile fund at 19.6% annualized versus 15.3% for SPY. Worst drawdown: PFD -85.8% vs SPY -56.5%.
Should I hold both PFD and SPY?
PFD and SPY have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFD and SPY?
PFD and SPY share 6 common holdings with a 0.4% weight overlap. Combined, they hold 677 unique securities.
Which pays a higher dividend, PFD or SPY?
PFD yields 6.46% while SPY yields 1.01%, so PFD currently pays the higher dividend yield.
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