PRFD vs SPY
PRFD vs SPY
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund 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 503 holdings.
Side-by-Side Comparison
| Metric | PRFD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.09% | |
| AUM | $235M | $789.1B | |
| Dividend Yield | 5.72% | 1.01% | |
| Holdings | 223 | 505 | |
| YTD Return | +1.07% | +13.79% | |
| 1Y Return | +4.79% | +23.66% | |
| 3Y Return (annualized) | +8.39% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 6.9% | 15.3% | |
| Max Drawdown | -11.9% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 18, 2023 | Jan 22, 1993 |
PRFD vs SPY Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PRFD returned +4.79% while SPY returned +23.66%. Year to date, PRFD is up 1.07% versus a gain of 13.79% for SPY.
Over three years, PRFD compounded at +8.39% per year against +21.40% for SPY. Across the full 4-year window we track, SPY has the edge at +8.85% annualized vs +5.98%. 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 6.9% for PRFD. 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 -11.9% for PRFD 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PRFD charges 0.73% per year while SPY charges 0.09%. On a $10,000 position that is $73 vs $9 annually, a gap of $64 per year that compounds over a long holding period. On income, PRFD currently yields 5.72% against 1.01% for SPY.
Holdings Overlap
PRFD and SPY share 0 holdings out of 619 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PRFD or SPY?
PRFD has an expense ratio of 0.73% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, PRFD or SPY?
Over the past year PRFD returned +4.79% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.98% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PRFD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs SPY -56.5%.
Should I hold both PRFD and SPY?
PRFD and SPY have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFD and SPY?
PRFD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 619 unique securities.
Which pays a higher dividend, PRFD or SPY?
PRFD yields 5.72% while SPY yields 1.01%, so PRFD currently pays the higher dividend yield.
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