PAFRX vs. SPY

Last updated Jun 3, 2026

PAFRX (T. Rowe Price Floating Rate Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - PAFRX is a Bank Loan fund managed by T. Rowe Price, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, PAFRX returned 4.46%/yr vs 15.57%/yr for SPY. At a 0.24 correlation, their price movements are largely independent. PAFRX charges 0.97%/yr vs 0.09%/yr for SPY.

Performance

PAFRX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Floating Rate Fund (PAFRX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAFRX achieves a 1.31% return, which is significantly lower than SPY's 11.69% return. Over the past 10 years, PAFRX has underperformed SPY with an annualized return of 4.46%, while SPY has yielded a comparatively higher 15.57% annualized return.

PAFRX

• 1D: 0.00%
• 1M: 0.43%
• YTD: 1.31%
• 6M: 2.10%
• 1Y: 5.53%
• 3Y*: 7.68%
• 5Y*: 5.13%
• 10Y*: 4.46%

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PAFRX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAFRX T. Rowe Price Floating Rate Fund	1.31%	6.37%	7.89%	10.68%	-2.11%	4.38%	1.53%	8.32%	-0.29%	3.27%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between PAFRX and SPY is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Aug 2, 2011	0.24

Return for Risk

PAFRX vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PAFRX

PAFRX Risk / Return Rank: 83
PAFRX Sharpe Ratio Rank: 72
PAFRX Sortino Ratio Rank: 97
PAFRX Omega Ratio Rank: 96
PAFRX Calmar Ratio Rank: 80
PAFRX Martin Ratio Rank: 71

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PAFRX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Floating Rate Fund (PAFRX) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PAFRX	SPY	Difference
Sharpe ratio Return per unit of total volatility	2.48	2.52	-0.04
Sortino ratio Return per unit of downside risk	5.71	3.42	+2.29
Omega ratio Gain probability vs. loss probability	1.89	1.46	+0.43
Calmar ratio Return relative to maximum drawdown	3.66	3.42	+0.24
Martin ratio Return relative to average drawdown	13.70	15.93	-2.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAFRX vs. SPY - Sharpe Ratio Comparison

The current PAFRX Sharpe Ratio is 2.48, which is comparable to the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of PAFRX and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PAFRX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	2.52	-0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.94	0.84	+1.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.18	0.87	+0.31
Sharpe Ratio (All Time) Calculated using the full available price history	1.25	0.59	+0.66

Drawdowns

PAFRX vs. SPY - Drawdown Comparison

The maximum PAFRX drawdown since its inception was -19.95%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for PAFRX and SPY.

Drawdown Indicators

	PAFRX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-19.95%	-55.19%	+35.24%
Max Drawdown (1Y) Largest decline over 1 year	-1.51%	-8.88%	+7.37%
Max Drawdown (3Y) Largest decline over 3 years	-2.47%	-18.76%	+16.29%
Max Drawdown (5Y) Largest decline over 5 years	-6.03%	-24.50%	+18.47%
Max Drawdown (10Y) Largest decline over 10 years	-19.95%	-33.72%	+13.77%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.70%	-9.05%	+8.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.40%	1.91%	-1.51%

Volatility

PAFRX vs. SPY - Volatility Comparison

The current volatility for T. Rowe Price Floating Rate Fund (PAFRX) is 0.60%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.75%. This indicates that PAFRX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAFRX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.60%	2.75%	-2.15%
Volatility (6M) Calculated over the trailing 6-month period	1.71%	8.89%	-7.18%
Volatility (1Y) Calculated over the trailing 1-year period	2.25%	11.81%	-9.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.66%	17.05%	-14.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.80%	17.94%	-14.14%

PAFRX vs. SPY - Expense Ratio Comparison

PAFRX has a 0.97% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

PAFRX vs. SPY - Dividend Comparison

PAFRX's dividend yield for the trailing twelve months is around 6.62%, more than SPY's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PAFRX T. Rowe Price Floating Rate Fund	6.62%	6.81%	7.34%	6.87%	3.85%	3.66%	3.79%	4.62%	4.64%	3.83%	3.87%	3.96%
SPY State Street SPDR S&P 500 ETF	0.97%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both PAFRX and SPY in my portfolio?

PAFRX and SPY have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAFRX or SPY?

SPY has higher volatility (2.75%) compared to PAFRX (0.60%). In terms of maximum drawdown, PAFRX dropped -19.95% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 2.48), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.