PSEP vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricPSEPVOOWinner
Expense Ratio0.79%0.03%
AUM$843M$979.0B
Dividend Yield0.00%1.09%
Holdings6509
YTD Return+6.68%+13.80%
1Y Return+12.16%+23.71%
3Y Return (annualized)+12.10%+21.50%
5Y Return (annualized)+9.54%+13.44%
Volatility (annualized)8.4%14.1%
Max Drawdown-17.9%-34.3%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionAug 30, 2019Sep 7, 2010

PSEP vs VOO Performance

Innovator U.S. Equity Power Buffer ETF - September (PSEP) is a ETF from Innovator ETFs Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PSEP returned +12.16% while VOO returned +23.71%. Year to date, PSEP is up 6.68% versus a gain of 13.80% for VOO.

Over three years, PSEP compounded at +12.10% per year against +21.50% for VOO; over five years the annualized figures are +9.54% and +13.44% respectively. Across the full 7-year window we track, VOO has the edge at +13.58% annualized vs +9.68%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $79 vs $3 annually, a gap of $76 per year that compounds over a long holding period. On income, PSEP currently yields 0.00% against 1.09% for VOO.

Frequently Asked Questions

Which is cheaper, PSEP or VOO?

PSEP has an expense ratio of 0.79% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, PSEP or VOO?

Over the past year PSEP returned +12.16% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (7 years), PSEP annualized +9.68% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, PSEP or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 8.4% for PSEP. Worst drawdown: PSEP -17.9% vs VOO -34.3%.

Should I hold both PSEP and VOO?

PSEP and VOO 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 VOO?

PSEP yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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