PFF vs. SPY
PFF (iShares Preferred and Income Securities ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - PFF is a Preferred Stock/Convertible Bonds fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, PFF returned 3.23%/yr vs 15.70%/yr for SPY. A 0.55 correlation means they provide meaningful diversification when combined. PFF charges 0.46%/yr vs 0.09%/yr for SPY.
Performance
PFF vs. SPY - Performance Comparison
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Returns By Period
In the year-to-date period, PFF achieves a 1.64% return, which is significantly lower than SPY's 9.74% return. Over the past 10 years, PFF has underperformed SPY with an annualized return of 3.23%, while SPY has yielded a comparatively higher 15.70% annualized return.
PFF
- 1D
- -1.25%
- 1M
- -0.85%
- YTD
- 1.64%
- 6M
- 1.02%
- 1Y
- 7.50%
- 3Y*
- 6.76%
- 5Y*
- 1.08%
- 10Y*
- 3.23%
SPY
- 1D
- -0.31%
- 1M
- 0.09%
- YTD
- 9.74%
- 6M
- 9.27%
- 1Y
- 26.65%
- 3Y*
- 21.27%
- 5Y*
- 13.51%
- 10Y*
- 15.70%
PFF vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 1.64% | 4.87% | 7.24% | 9.22% | -18.19% | 7.15% | 7.89% | 15.93% | -4.64% | 8.10% |
SPY State Street SPDR S&P 500 ETF | 9.74% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
Correlation
The correlation between PFF and SPY is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Mar 30, 2007 | 0.55 |
The correlation between PFF and SPY shifts across timeframes, from 0.55 (all time) to 0.75 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
PFF vs. SPY — Risk / Return Rank
PFF
SPY
PFF vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Preferred and Income Securities ETF (PFF) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| PFF | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.08 | ||
| Sortino ratioReturn per unit of downside risk | -1.37 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.39 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 1.43 | 3.01 | -1.58 |
| Martin ratioReturn relative to average drawdown | 4.32 | 13.54 | -9.22 |
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Drawdowns
PFF vs. SPY - Drawdown Comparison
The maximum PFF drawdown since its inception was -65.55%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for PFF and SPY.
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Drawdown Indicators
| PFF | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.55% | -55.19% | -10.36% |
Max Drawdown (1Y)Largest decline over 1 year | -5.28% | -8.88% | +3.60% |
Max Drawdown (3Y)Largest decline over 3 years | -10.63% | -18.76% | +8.13% |
Max Drawdown (5Y)Largest decline over 5 years | -21.05% | -24.50% | +3.45% |
Max Drawdown (10Y)Largest decline over 10 years | -34.10% | -33.72% | -0.38% |
Current DrawdownCurrent decline from peak | -2.35% | -1.75% | -0.60% |
Average DrawdownAverage peak-to-trough decline | -5.75% | -9.04% | +3.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.74% | 1.97% | -0.23% |
Volatility
PFF vs. SPY - Volatility Comparison
The current volatility for iShares Preferred and Income Securities ETF (PFF) is 2.42%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that PFF 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.
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Volatility by Period
| PFF | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.42% | 4.64% | -2.22% |
Volatility (6M)Calculated over the trailing 6-month period | 5.43% | 9.75% | -4.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.04% | 12.43% | -5.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.35% | 17.14% | -6.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.68% | 17.99% | -5.31% |
PFF vs. SPY - Expense Ratio Comparison
PFF has a 0.46% expense ratio, which is higher than SPY's 0.09% expense ratio.
Dividends
PFF vs. SPY - Dividend Comparison
PFF's dividend yield for the trailing twelve months is around 5.54%, more than SPY's 1.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 5.54% | 6.30% | 6.32% | 6.63% | 6.01% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% |
SPY State Street SPDR S&P 500 ETF | 1.01% | 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
PFF and SPY have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (4.64%) compared to PFF (2.42%). In terms of maximum drawdown, PFF dropped -65.55% vs SPY's -55.19%.
On 10-year performance, SPY leads with 15.70% vs 3.23% for PFF. On fees, SPY is cheaper at 0.09% per year. On volatility, PFF has been the lower-risk option at 2.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SPY has performed better with a 15.70% return vs 3.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPY is cheaper with a 0.09% expense ratio, compared with 0.46% for PFF.
PFF has the higher dividend yield at 5.54%, compared with 1.01% for SPY.
PFF is categorized as Preferred Stock/Convertible Bonds, while SPY is S&P 500. PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.46% for PFF and 0.09% for SPY.
SPY currently has the higher Sharpe Ratio (2.16 vs 1.07), 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.
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