PSC vs SPY
PSC vs SPY
Principal U.S. Small-Cap Multi-Factor ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PSC delivered stronger 1-year returns. PSC offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PSC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $2.2B | $789.1B | |
| Dividend Yield | 0.55% | 1.01% | |
| Holdings | 513 | 505 | |
| YTD Return | +20.69% | +13.79% | |
| 1Y Return | +33.12% | +23.66% | |
| 3Y Return (annualized) | +17.87% | +21.40% | |
| 5Y Return (annualized) | +9.84% | +13.37% | |
| Volatility (annualized) | 20.9% | 15.3% | |
| Max Drawdown | -47.9% | -56.5% | |
| Fund Family | Principal Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 21, 2016 | Jan 22, 1993 |
PSC vs SPY Performance
Principal U.S. Small-Cap Multi-Factor ETF (PSC) 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 PSC returned +33.12% while SPY returned +23.66%. Year to date, PSC is up 20.69% versus a gain of 13.79% for SPY.
Over three years, PSC compounded at +17.87% per year against +21.40% for SPY; over five years the annualized figures are +9.84% and +13.37% respectively. Across the full 10-year window we track, PSC has the edge at +11.49% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSC has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 15.3% for SPY. 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 -47.9% for PSC 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSC charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, PSC currently yields 0.55% against 1.01% for SPY.
Holdings Overlap
PSC and SPY share 0 holdings out of 1012 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSC or SPY?
PSC has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, PSC or SPY?
Over the past year PSC returned +33.12% vs +23.66% for SPY, so PSC leads on 1-year performance. Over the longest common window we track (10 years), PSC annualized +11.49% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PSC or SPY?
PSC has been the more volatile fund at 20.9% annualized versus 15.3% for SPY. Worst drawdown: PSC -47.9% vs SPY -56.5%.
Should I hold both PSC and SPY?
PSC and SPY have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSC and SPY?
PSC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1012 unique securities.
Which pays a higher dividend, PSC or SPY?
PSC yields 0.55% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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