PSEP vs SPY
PSEP vs SPY
Innovator U.S. Equity Power Buffer ETF - September 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 | PSEP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.09% | |
| AUM | $843M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 6 | 505 | |
| YTD Return | +6.68% | +13.79% | |
| 1Y Return | +12.16% | +23.66% | |
| 3Y Return (annualized) | +12.10% | +21.40% | |
| 5Y Return (annualized) | +9.54% | +13.37% | |
| Volatility (annualized) | 8.4% | 15.3% | |
| Max Drawdown | -17.9% | -56.5% | |
| Fund Family | Innovator ETFs Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Aug 30, 2019 | Jan 22, 1993 |
PSEP vs SPY Performance
Innovator U.S. Equity Power Buffer ETF - September (PSEP) is a ETF from Innovator ETFs Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSEP returned +12.16% while SPY returned +23.66%. Year to date, PSEP is up 6.68% versus a gain of 13.79% for SPY.
Over three years, PSEP compounded at +12.10% per year against +21.40% for SPY; over five years the annualized figures are +9.54% and +13.37% respectively. Across the full 7-year window we track, PSEP has the edge at +9.68% annualized vs +8.85%. 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 8.4% for PSEP. 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 -17.9% for PSEP 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PSEP charges 0.79% per year while SPY charges 0.09%. On a $10,000 position that is $79 vs $9 annually, a gap of $70 per year that compounds over a long holding period. On income, PSEP currently yields 0.00% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, PSEP or SPY?
PSEP has an expense ratio of 0.79% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, PSEP or SPY?
Over the past year PSEP returned +12.16% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), PSEP annualized +9.68% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PSEP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.4% for PSEP. Worst drawdown: PSEP -17.9% vs SPY -56.5%.
Should I hold both PSEP and SPY?
PSEP and SPY have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
Which pays a higher dividend, PSEP or SPY?
PSEP yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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