PFF vs SPY
iShares Preferred and Income Securities ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PFF or SPY?
Preferred Stock against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y 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 | PFF | SPY |
|---|---|---|
| Expense Ratio | 0.45% | 0.09%Best |
| AUM | $13.1B | $814.4B |
| Dividend Yield | 5.51% | 1.01% |
| Holdings | 464 | 505 |
| YTD Return | +0.48% | +13.34%Best |
| 1Y Return | +1.63% | +19.97%Best |
| 3Y Return (annualized) | +6.39% | +21.20%Best |
| 5Y Return (annualized) | +0.88% | +12.81%Best |
| Volatility (annualized) | 15.3%Best | 15.5% |
| Max Drawdown | -70.2% | -56.5%Best |
| $10,000 over 5 years | $10,448 | $18,270Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Mar 26, 2007 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 30, 2007 to Sep 4, 2026 (19.4 years).
PFF 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PFF vs SPY Performance
iShares Preferred and Income Securities ETF (PFF) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PFF returned +1.63% while SPY returned +19.97%. Year to date, PFF is up 0.48% versus a gain of 13.34% for SPY.
Over three years, PFF compounded at +6.39% per year against +21.20% for SPY; over five years the annualized figures are +0.88% and +12.81% respectively. Across the full 19-year window we track, SPY has the edge at +9.51% annualized vs -0.86%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 15.3% for PFF. 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 -70.2% for PFF and -56.5% 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 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PFF charges 0.45% per year while SPY charges 0.09%. On a $10,000 position that is $45 vs $9 annually, a gap of $36 per year that compounds over a long holding period. On income, PFF currently yields 5.51% against 1.01% for SPY.
Holdings Overlap
At least 11.8% of SPY's money is in holdings PFF also owns.
Stated as a floor: for PFF, our book for it covers 59.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and PFF share little of their money.
59 positions in common, counted across the 211 positions we hold weights for in PFF and 504 in SPY, against full books of 464 and 505.
Top Shared Holdings
| Stock | Weight in PFF | Weight in SPY | Difference |
|---|---|---|---|
| GOOGLAlphabet Inc.Class A | 2.35% | 3.33% | 0.98% |
| BABoeing Co | 3.84% | 0.28% | 3.56% |
| WFCWells Fargo & Co. | 2.16% | 0.41% | 1.75% |
| ORCLOracle Corp - Common | 2.04% | 0.37% | 1.67% |
| JPMJpmorgan Chase | 0.87% | 1.44% | 0.57% |
| BACBank of America Corp.: Financials | 1.40% | 0.62% | 0.78% |
| SMCISuper Micro Computer Inc Common Stock USD.001 | 1.68% | 0.03% | 1.65% |
| HPEHewlett Packard Enterprise Co | 1.56% | 0.10% | 1.46% |
| CCitigroup Inc. | 1.22% | 0.35% | 0.87% |
| NEENextera Energy Inc | 1.03% | 0.27% | 0.76% |
You are not choosing between two funds in isolation.
Whichever of PFF 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, PFF or SPY?
PFF has an expense ratio of 0.45% while SPY charges 0.09%. SPY is the cheaper option, by $36 a year on a $10,000 investment.
Which performed better, PFF or SPY?
Over the past year PFF returned +1.63% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), PFF annualized -0.86% vs +9.51% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PFF or SPY?
SPY has been the more volatile fund at 15.5% annualized versus 15.3% for PFF. Worst drawdown: PFF -70.2% vs SPY -56.5%.
Should I hold both PFF and SPY?
PFF and SPY have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PFF and SPY?
At least 11.8% of SPY's money is in holdings PFF also owns. Our book for PFF is partial, so the real figure is this or higher. They hold 59 positions in common, counted across the 211 positions we hold weights for in PFF and 504 in SPY.
Which pays a higher dividend, PFF or SPY?
PFF yields 5.51% while SPY yields 1.01%, so PFF currently pays the higher dividend yield.
Is SPY better than PFF?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.