PSDM vs SPY
PGIM Short Duration Multi-Sector Bond 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 503 holdings.
Side-by-Side Comparison
| Metric | PSDM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $219M | $789.1B | |
| Dividend Yield | 5.23% | 1.01% | |
| Holdings | 848 | 505 | |
| YTD Return | -1.17% | +13.68% | |
| 1Y Return | +0.61% | +21.53% | |
| 3Y Return (annualized) | +4.65% | +21.44% | |
| 5Y Return (annualized) | - | +13.18% | |
| Volatility (annualized) | 2.2% | 15.3% | |
| Max Drawdown | -2.2% | -56.5% | |
| Fund Family | PGIM Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 19, 2023 | Jan 22, 1993 |
PSDM vs SPY Performance
PGIM Short Duration Multi-Sector Bond ETF (PSDM) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSDM returned +0.61% while SPY returned +21.53%. Year to date, PSDM is down 1.17% versus a gain of 13.68% for SPY.
Over three years, PSDM compounded at +4.65% per year against +21.44% for SPY. Across the full 3-year window we track, SPY has the edge at +8.85% annualized vs +4.59%. 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 2.2% for PSDM. 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 -2.2% for PSDM 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSDM charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, PSDM currently yields 5.23% against 1.01% for SPY.
Holdings Overlap
PSDM and SPY share 0 holdings out of 825 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, PSDM or SPY?
PSDM has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, PSDM or SPY?
Over the past year PSDM returned +0.61% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), PSDM annualized +4.59% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PSDM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.2% for PSDM. Worst drawdown: PSDM -2.2% vs SPY -56.5%.
Should I hold both PSDM and SPY?
PSDM and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSDM and SPY?
PSDM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 825 unique securities.
Which pays a higher dividend, PSDM or SPY?
PSDM yields 5.23% while SPY yields 1.01%, so PSDM currently pays the higher dividend yield.
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