PSET vs SPY
Principal Quality ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PSET or SPY?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. PSET is less concentrated, with 32.5% of the fund in its ten largest positions against 37.8%.
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 | PSET | SPY |
|---|---|---|
| Expense Ratio | 0.15% | 0.09%Best |
| AUM | $29M | $804.7B |
| Dividend Yield | 0.67% | 0.98% |
| Holdings | 75 | 505 |
| YTD Return | +1.82% | +10.96%Best |
| 1Y Return | +2.56% | +15.52%Best |
| 3Y Return (annualized) | +12.09% | +20.73%Best |
| 5Y Return (annualized) | +7.52% | +12.53%Best |
| Volatility (annualized) | 15.1%Tie | 15.1%Tie |
| Max Drawdown | -34.8% | -34.1%Best |
| $10,000 over 5 years | $14,370 | $18,044Best |
| Top 10 Weight | 32.5%Best | 37.8% |
| Fund Family | Principal Funds | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Mar 21, 2016 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Mar 22, 2016 to Sep 16, 2026 (10.5 years).
PSET 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 10.5 years both funds cover.
PSET vs SPY Performance
Principal Quality ETF (PSET) 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 PSET returned +2.56% while SPY returned +15.52%. Year to date, PSET is up 1.82% versus a gain of 10.96% for SPY.
Over three years, PSET compounded at +12.09% per year against +20.73% for SPY; over five years the annualized figures are +7.52% and +12.53% respectively. Across the full 11-year window we track, SPY has the edge at +14.05% annualized vs +11.89%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSET and SPY have been equally volatile, both at 15.1% annualized.
The deepest peak-to-trough decline in our data was -34.8% for PSET and -34.1% 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PSET charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, PSET currently yields 0.67% against 0.98% for SPY.
Holdings Overlap
97.7% of PSET's money is in holdings SPY also owns. 45.6% of SPY's money is in holdings PSET also owns.
Most of PSET is already inside SPY. Owning both mostly buys the same companies twice.
70 positions in common, counted across the 73 positions we hold weights for in PSET and 504 in SPY, against full books of 75 and 505.
What only one of them owns
Our book lists 428 positions for SPY that do not appear in our book for PSET (53.7% of the fund), and 1 for PSET that do not appear in SPY (0.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PSET | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp | 6.73% | 8.01% | 1.28% |
| AAPLApple, Inc | 5.68% | 7.26% | 1.58% |
| MSFTMicrosoft Corp | 4.23% | 5.66% | 1.43% |
| AMZNAmazon.Com Inc | 2.31% | 3.79% | 1.48% |
| GOOGAlphabet Inc | 2.77% | 2.39% | 0.38% |
| GOOGLAlphabet Inc,class A | 1.23% | 2.99% | 1.76% |
| AVGOBroadcom Inc | 1.22% | 2.66% | 1.44% |
| PANWPalo Alto Networks, Inc | 2.80% | 0.45% | 2.35% |
| VVisa Inc Class A | 2.21% | 0.94% | 1.27% |
| METAMeta Platforms Inc | 0.75% | 1.93% | 1.18% |
97.7% of PSET is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PSET or SPY?
PSET has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, PSET or SPY?
Over the past year PSET returned +2.56% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), PSET annualized +11.89% vs +14.05% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PSET or SPY?
PSET and SPY have been equally volatile, both at 15.1% annualized. Worst drawdown: PSET -34.8% vs SPY -34.1%.
Should I hold both PSET and SPY?
PSET and SPY have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between PSET and SPY?
97.7% of PSET's money is in holdings SPY also owns. 45.6% of SPY's is in holdings PSET also owns. They hold 70 positions in common, counted across the 73 positions we hold weights for in PSET and 504 in SPY.
Which pays a higher dividend, PSET or SPY?
PSET yields 0.67% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than PSET?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. PSET is less concentrated, with 32.5% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.