PGX vs SPY
Invesco 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 | PGX | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $3.8B | $821.1B | |
| Dividend Yield | 6.38% | 1.01% | |
| Holdings | 270 | 505 | |
| YTD Return | -3.24% | +12.93% | |
| 1Y Return | -2.01% | +20.62% | |
| 3Y Return (annualized) | +4.98% | +22.00% | |
| 5Y Return (annualized) | -1.30% | +13.33% | |
| Volatility (annualized) | 14.4% | 15.3% | |
| Max Drawdown | -69.5% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 31, 2008 | Jan 22, 1993 |
PGX vs SPY Performance
Invesco Preferred ETF (PGX) 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 PGX returned -2.01% while SPY returned +20.62%. Year to date, PGX is down 3.24% versus a gain of 12.93% for SPY.
Over three years, PGX compounded at +4.98% per year against +22.00% for SPY; over five years the annualized figures are -1.30% and +13.33% respectively. Across the full 19-year window we track, SPY has the edge at +8.82% annualized vs -1.79%. 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 14.4% for PGX. 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 -69.5% for PGX 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGX charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, PGX currently yields 6.38% against 1.01% for SPY.
Holdings Overlap
PGX and SPY share 21 holdings out of 710 unique holdings combined, representing a 2.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGX or SPY?
PGX has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PGX or SPY?
Over the past year PGX returned -2.01% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), PGX annualized -1.79% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, PGX or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.4% for PGX. Worst drawdown: PGX -69.5% vs SPY -56.5%.
Should I hold both PGX and SPY?
PGX and SPY have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGX and SPY?
PGX and SPY share 21 common holdings with a 2.9% weight overlap. Combined, they hold 710 unique securities.
Which pays a higher dividend, PGX or SPY?
PGX yields 6.38% while SPY yields 1.01%, so PGX currently pays the higher dividend yield.
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