PFO vs SPY
Flaherty & Crumrine Preferred Income Opportunity 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 | PFO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | - | 0.09% | |
| AUM | $132M | $789.1B | |
| Dividend Yield | 6.60% | 1.01% | |
| Holdings | 260 | 505 | |
| YTD Return | +0.50% | +13.39% | |
| 1Y Return | +5.06% | +22.52% | |
| 3Y Return (annualized) | +12.49% | +21.36% | |
| 5Y Return (annualized) | -0.29% | +13.19% | |
| Volatility (annualized) | 18.3% | 15.3% | |
| Max Drawdown | -83.2% | -56.5% | |
| Fund Family | Flaherty & Crumrine | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 13, 1992 | Jan 22, 1993 |
PFO vs SPY Performance
Flaherty & Crumrine Preferred Income Opportunity Fund Inc (PFO) 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 PFO returned +5.06% while SPY returned +22.52%. Year to date, PFO is up 0.50% versus a gain of 13.39% for SPY.
Over three years, PFO compounded at +12.49% per year against +21.36% for SPY; over five years the annualized figures are -0.29% and +13.19% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs +0.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFO has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -83.2% for PFO 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Holdings Overlap
PFO and SPY share 7 holdings out of 673 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, PFO or SPY?
Over the past year PFO returned +5.06% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PFO annualized +0.84% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, PFO or SPY?
PFO has been the more volatile fund at 18.3% annualized versus 15.3% for SPY. Worst drawdown: PFO -83.2% vs SPY -56.5%.
Should I hold both PFO and SPY?
PFO and SPY have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFO and SPY?
PFO and SPY share 7 common holdings with a 0.4% weight overlap. Combined, they hold 673 unique securities.
Which pays a higher dividend, PFO or SPY?
PFO yields 6.60% while SPY yields 1.01%, so PFO currently pays the higher dividend yield.
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