PQDI vs SPY
Principal Spectrum Preferred and Income ETF 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 505 holdings.
Side-by-Side Comparison
| Metric | PQDI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $70M | $821.1B | |
| Dividend Yield | 5.61% | 1.01% | |
| Holdings | 95 | 505 | |
| YTD Return | +1.47% | +12.68% | |
| 1Y Return | +4.94% | +21.82% | |
| 3Y Return (annualized) | +8.59% | +21.98% | |
| 5Y Return (annualized) | +2.99% | +12.89% | |
| Volatility (annualized) | 6.3% | 15.3% | |
| Max Drawdown | -17.4% | -56.5% | |
| Fund Family | Principal Funds | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 16, 2020 | Jan 22, 1993 |
PQDI vs SPY Performance
Principal Spectrum Preferred and Income ETF (PQDI) is a ETF from Principal Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PQDI returned +4.94% while SPY returned +21.82%. Year to date, PQDI is up 1.47% versus a gain of 12.68% for SPY.
Over three years, PQDI compounded at +8.59% per year against +21.98% for SPY; over five years the annualized figures are +2.99% and +12.89% respectively. Across the full 6-year window we track, SPY has the edge at +8.81% annualized vs +3.99%. 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 6.3% for PQDI. 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 -17.4% for PQDI 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PQDI charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, PQDI currently yields 5.61% against 1.01% for SPY.
Holdings Overlap
PQDI and SPY share 4 holdings out of 572 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PQDI or SPY?
PQDI has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, PQDI or SPY?
Over the past year PQDI returned +4.94% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), PQDI annualized +3.99% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, PQDI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.3% for PQDI. Worst drawdown: PQDI -17.4% vs SPY -56.5%.
Should I hold both PQDI and SPY?
PQDI and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PQDI and SPY?
PQDI and SPY share 4 common holdings with a 0.7% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, PQDI or SPY?
PQDI yields 5.61% while SPY yields 1.01%, so PQDI currently pays the higher dividend yield.
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