PFUT vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricPFUTSPYWinner
Expense Ratio0.64%0.09%
AUM$4M$789.1B
Dividend Yield0.00%1.01%
Holdings72505
YTD Return+1.20%+14.47%
1Y Return+4.40%+21.96%
3Y Return (annualized)+10.99%+21.70%
5Y Return (annualized)+0.47%+13.30%
Volatility (annualized)20.0%15.3%
Max Drawdown-44.9%-56.5%
Fund FamilyPutnam InvestmentsState Street Investment Management
CategoryEquityEquity
InceptionMay 25, 2021Jan 22, 1993

PFUT vs SPY Performance

Putnam Sustainable Future ETF (PFUT) is a ETF from Putnam Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PFUT returned +4.40% while SPY returned +21.96%. Year to date, PFUT is up 1.20% versus a gain of 14.47% for SPY.

Over three years, PFUT compounded at +10.99% per year against +21.70% for SPY; over five years the annualized figures are +0.47% and +13.30% respectively. Across the full 5-year window we track, SPY has the edge at +8.87% annualized vs +0.61%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PFUT has been the more volatile fund, with annualized monthly volatility of 20.0% 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 -44.9% for PFUT 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PFUT charges 0.64% per year while SPY charges 0.09%. On a $10,000 position that is $64 vs $9 annually, a gap of $55 per year that compounds over a long holding period. On income, PFUT currently yields 0.00% against 1.01% for SPY.

Holdings Overlap

6.1%overlap

PFUT and SPY share 37 holdings out of 534 unique holdings combined, representing a 6.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFUTWeight in SPYDifference
VRT4.94%0.19%4.75%
AVGO1.21%2.73%1.52%
PWR3.62%0.16%3.46%
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Frequently Asked Questions

Which is cheaper, PFUT or SPY?

PFUT has an expense ratio of 0.64% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $55 per year of difference.

Which performed better, PFUT or SPY?

Over the past year PFUT returned +4.40% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), PFUT annualized +0.61% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, PFUT or SPY?

PFUT has been the more volatile fund at 20.0% annualized versus 15.3% for SPY. Worst drawdown: PFUT -44.9% vs SPY -56.5%.

Should I hold both PFUT and SPY?

PFUT and SPY have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PFUT and SPY?

PFUT and SPY share 37 common holdings with a 6.1% weight overlap. Combined, they hold 534 unique securities.

Which pays a higher dividend, PFUT or SPY?

PFUT yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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