QPFF 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

MetricQPFFSPYWinner
Expense Ratio0.32%0.09%
AUM$40M$789.1B
Dividend Yield6.03%1.01%
Holdings1505
YTD Return+0.90%+13.39%
1Y Return+0.38%+22.52%
3Y Return (annualized)+5.39%+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)8.9%15.3%
Max Drawdown-15.2%-56.5%
Fund FamilyAmerican Century InvestmentsState Street Investment Management
CategoryAllocation/BalancedEquity
InceptionFeb 16, 2021Jan 22, 1993

QPFF vs SPY Performance

American Century Quality Preferred ETF (QPFF) is a ETF from American Century Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QPFF returned +0.38% while SPY returned +22.52%. Year to date, QPFF is up 0.90% versus a gain of 13.39% for SPY.

Over three years, QPFF compounded at +5.39% per year against +21.36% for SPY. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs +2.87%. 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 8.9% for QPFF. 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 -15.2% for QPFF 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QPFF charges 0.32% per year while SPY charges 0.09%. On a $10,000 position that is $32 vs $9 annually, a gap of $23 per year that compounds over a long holding period. On income, QPFF currently yields 6.03% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, QPFF or SPY?

QPFF has an expense ratio of 0.32% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $23 per year of difference.

Which performed better, QPFF or SPY?

Over the past year QPFF returned +0.38% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), QPFF annualized +2.87% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, QPFF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 8.9% for QPFF. Worst drawdown: QPFF -15.2% vs SPY -56.5%.

Should I hold both QPFF and SPY?

QPFF and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QPFF or SPY?

QPFF yields 6.03% while SPY yields 1.01%, so QPFF currently pays the higher dividend yield.

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