PFRL vs SPY
PGIM Floating Rate Income 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 505 holdings.
Side-by-Side Comparison
| Metric | PFRL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.09% | |
| AUM | $125M | $821.1B | |
| Dividend Yield | 7.67% | 1.01% | |
| Holdings | 429 | 505 | |
| YTD Return | +3.62% | +12.22% | |
| 1Y Return | +5.63% | +20.83% | |
| 3Y Return (annualized) | +7.97% | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 3.5% | 15.3% | |
| Max Drawdown | -8.8% | -56.5% | |
| Fund Family | PGIM Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 17, 2022 | Jan 22, 1993 |
PFRL vs SPY Performance
PGIM Floating Rate Income ETF (PFRL) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PFRL returned +5.63% while SPY returned +20.83%. Year to date, PFRL is up 3.62% versus a gain of 12.22% for SPY.
Over three years, PFRL compounded at +7.97% per year against +21.70% for SPY. Across the full 4-year window we track, SPY has the edge at +8.79% annualized vs +8.01%. 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 3.5% for PFRL. 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 -8.8% for PFRL 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFRL charges 0.72% per year while SPY charges 0.09%. On a $10,000 position that is $72 vs $9 annually, a gap of $63 per year that compounds over a long holding period. On income, PFRL currently yields 7.67% against 1.01% for SPY.
Holdings Overlap
PFRL and SPY share 1 holdings out of 538 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PFRL | Weight in SPY | Difference |
|---|---|---|---|
| C | 0.12% | 0.35% | 0.23% |
Frequently Asked Questions
Which is cheaper, PFRL or SPY?
PFRL has an expense ratio of 0.72% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, PFRL or SPY?
Over the past year PFRL returned +5.63% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), PFRL annualized +8.01% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, PFRL or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.5% for PFRL. Worst drawdown: PFRL -8.8% vs SPY -56.5%.
Should I hold both PFRL and SPY?
PFRL and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFRL and SPY?
PFRL and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 538 unique securities.
Which pays a higher dividend, PFRL or SPY?
PFRL yields 7.67% while SPY yields 1.01%, so PFRL currently pays the higher dividend yield.
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