PRFZ vs SPY
Invesco RAFI US 1500 Small-Mid ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PRFZ delivered stronger 1-year returns. PRFZ offers more diversification with 1314 holdings.
Side-by-Side Comparison
| Metric | PRFZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.09% | |
| AUM | $2.8B | $789.1B | |
| Dividend Yield | 0.77% | 1.01% | |
| Holdings | 1,554 | 505 | |
| YTD Return | +21.79% | +13.39% | |
| 1Y Return | +35.80% | +22.52% | |
| 3Y Return (annualized) | +17.99% | +21.36% | |
| 5Y Return (annualized) | +9.90% | +13.19% | |
| Volatility (annualized) | 21.3% | 15.3% | |
| Max Drawdown | -63.0% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2006 | Jan 22, 1993 |
PRFZ vs SPY Performance
Invesco RAFI US 1500 Small-Mid ETF (PRFZ) 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 PRFZ returned +35.80% while SPY returned +22.52%. Year to date, PRFZ is up 21.79% versus a gain of 13.39% for SPY.
Over three years, PRFZ compounded at +17.99% per year against +21.36% for SPY; over five years the annualized figures are +9.90% and +13.19% respectively. Across the full 20-year window we track, PRFZ has the edge at +9.36% annualized vs +8.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PRFZ has been the more volatile fund, with annualized monthly volatility of 21.3% 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 -63.0% for PRFZ 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
PRFZ charges 0.34% per year while SPY charges 0.09%. On a $10,000 position that is $34 vs $9 annually, a gap of $25 per year that compounds over a long holding period. On income, PRFZ currently yields 0.77% against 1.01% for SPY.
Holdings Overlap
PRFZ and SPY share 11 holdings out of 1806 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PRFZ or SPY?
PRFZ has an expense ratio of 0.34% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, PRFZ or SPY?
Over the past year PRFZ returned +35.80% vs +22.52% for SPY, so PRFZ leads on 1-year performance. Over the longest common window we track (20 years), PRFZ annualized +9.36% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, PRFZ or SPY?
PRFZ has been the more volatile fund at 21.3% annualized versus 15.3% for SPY. Worst drawdown: PRFZ -63.0% vs SPY -56.5%.
Should I hold both PRFZ and SPY?
PRFZ 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 PRFZ and SPY?
PRFZ and SPY share 11 common holdings with a 0.5% weight overlap. Combined, they hold 1806 unique securities.
Which pays a higher dividend, PRFZ or SPY?
PRFZ yields 0.77% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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