PQDI vs SPY
Principal Spectrum Preferred and Income ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PQDI or SPY?
Preferred Stock against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PQDI | SPY |
|---|---|---|
| Expense Ratio | 0.60% | 0.09%Best |
| AUM | $111M | $804.7B |
| Dividend Yield | 5.69% | 0.98% |
| Holdings | 105 | 505 |
| YTD Return | +0.58% | +12.47%Best |
| 1Y Return | +2.58% | +17.51%Best |
| 3Y Return (annualized) | +8.00% | +21.18%Best |
| 5Y Return (annualized) | +2.68% | +12.88%Best |
| Volatility (annualized) | 6.3%Best | 15.5% |
| Max Drawdown | -17.4%Best | -24.5% |
| $10,000 over 5 years | $11,414 | $18,327Best |
| Fund Family | Principal Funds | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Jun 16, 2020 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2020 to Sep 11, 2026 (6.2 years).
PQDI vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.2 years both funds cover.
PQDI vs SPY Performance
Principal Spectrum Preferred and Income ETF (PQDI) is an ETF from Principal Funds and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PQDI returned +2.58% while SPY returned +17.51%. Year to date, PQDI is up 0.58% versus a gain of 12.47% for SPY.
Over three years, PQDI compounded at +8.00% per year against +21.18% for SPY; over five years the annualized figures are +2.68% and +12.88% respectively. Across the full 6-year window we track, SPY has the edge at +16.86% annualized vs +3.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -24.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
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 5.69% against 0.98% for SPY.
Holdings Overlap
At least 0.3% of SPY's money is in holdings PQDI also owns.
Stated as a floor: for PQDI, our book for it covers 60.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
3 positions in common, counted across the 72 positions we hold weights for in PQDI and 504 in SPY, against full books of 105 and 505.
You are not choosing between two funds in isolation.
Whichever of PQDI and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $51 a year on a $10,000 investment.
Which performed better, PQDI or SPY?
Over the past year PQDI returned +2.58% vs +17.51% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), PQDI annualized +3.81% vs +16.86% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PQDI or SPY?
SPY has been the more volatile fund at 15.5% annualized versus 6.3% for PQDI. Worst drawdown: PQDI -17.4% vs SPY -24.5%.
Should I hold both PQDI and SPY?
PQDI and SPY have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PQDI or SPY?
PQDI yields 5.69% while SPY yields 0.98%, so PQDI currently pays the higher dividend yield.
Is SPY better than PQDI?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.