PGF vs SPY
Invesco Financial 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 505 holdings.
Side-by-Side Comparison
| Metric | PGF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $664M | $821.1B | |
| Dividend Yield | 6.42% | 1.01% | |
| Holdings | 102 | 505 | |
| YTD Return | -2.61% | +13.70% | |
| 1Y Return | -1.16% | +21.44% | |
| 3Y Return (annualized) | +4.86% | +22.50% | |
| 5Y Return (annualized) | -1.16% | +13.24% | |
| Volatility (annualized) | 17.7% | 15.3% | |
| Max Drawdown | -79.2% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 1, 2006 | Jan 22, 1993 |
PGF vs SPY Performance
Invesco Financial Preferred ETF (PGF) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PGF returned -1.16% while SPY returned +21.44%. Year to date, PGF is down 2.61% versus a gain of 13.70% for SPY.
Over three years, PGF compounded at +4.86% per year against +22.50% for SPY; over five years the annualized figures are -1.16% and +13.24% respectively. Across the full 20-year window we track, SPY has the edge at +8.84% annualized vs -1.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PGF has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -79.2% for PGF 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGF charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, PGF currently yields 6.42% against 1.01% for SPY.
Holdings Overlap
PGF and SPY share 11 holdings out of 586 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGF or SPY?
PGF has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, PGF or SPY?
Over the past year PGF returned -1.16% vs +21.44% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), PGF annualized -1.59% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, PGF or SPY?
PGF has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: PGF -79.2% vs SPY -56.5%.
Should I hold both PGF and SPY?
PGF and SPY have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGF and SPY?
PGF and SPY share 11 common holdings with a 1.7% weight overlap. Combined, they hold 586 unique securities.
Which pays a higher dividend, PGF or SPY?
PGF yields 6.42% while SPY yields 1.01%, so PGF currently pays the higher dividend yield.
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