PFFD vs SPY
Global X US Preferred ETF 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 | PFFD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.09% | |
| AUM | $2.1B | $789.1B | |
| Dividend Yield | 6.43% | 1.01% | |
| Holdings | 228 | 505 | |
| YTD Return | +0.31% | +13.79% | |
| 1Y Return | +3.40% | +23.66% | |
| 3Y Return (annualized) | +5.00% | +21.40% | |
| 5Y Return (annualized) | -0.71% | +13.37% | |
| Volatility (annualized) | 10.6% | 15.3% | |
| Max Drawdown | -31.3% | -56.5% | |
| Fund Family | Global X by mirae Asset | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 11, 2017 | Jan 22, 1993 |
PFFD vs SPY Performance
Global X US Preferred ETF (PFFD) is a ETF from Global X by mirae Asset and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PFFD returned +3.40% while SPY returned +23.66%. Year to date, PFFD is up 0.31% versus a gain of 13.79% for SPY.
Over three years, PFFD compounded at +5.00% per year against +21.40% for SPY; over five years the annualized figures are -0.71% and +13.37% respectively. Across the full 9-year window we track, SPY has the edge at +8.85% annualized vs +0.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 10.6% for PFFD. 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 -31.3% for PFFD 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFFD charges 0.23% per year while SPY charges 0.09%. On a $10,000 position that is $23 vs $9 annually, a gap of $14 per year that compounds over a long holding period. On income, PFFD currently yields 6.43% against 1.01% for SPY.
Holdings Overlap
PFFD and SPY share 15 holdings out of 548 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFFD or SPY?
PFFD has an expense ratio of 0.23% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, PFFD or SPY?
Over the past year PFFD returned +3.40% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), PFFD annualized +0.24% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PFFD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.6% for PFFD. Worst drawdown: PFFD -31.3% vs SPY -56.5%.
Should I hold both PFFD and SPY?
PFFD and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFFD and SPY?
PFFD and SPY share 15 common holdings with a 1.5% weight overlap. Combined, they hold 548 unique securities.
Which pays a higher dividend, PFFD or SPY?
PFFD yields 6.43% while SPY yields 1.01%, so PFFD currently pays the higher dividend yield.
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