PSI vs SPY
Invesco Semiconductors ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PSI delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PSI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.09% | |
| AUM | $2.7B | $821.1B | |
| Dividend Yield | 0.04% | 1.01% | |
| Holdings | 32 | 505 | |
| YTD Return | +76.58% | +12.93% | |
| 1Y Return | +137.99% | +20.62% | |
| 3Y Return (annualized) | +49.21% | +22.00% | |
| 5Y Return (annualized) | +29.45% | +13.33% | |
| Volatility (annualized) | 28.9% | 15.3% | |
| Max Drawdown | -99.6% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Jan 22, 1993 |
PSI vs SPY Performance
Invesco Semiconductors ETF (PSI) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSI returned +137.99% while SPY returned +20.62%. Year to date, PSI is up 76.58% versus a gain of 12.93% for SPY.
Over three years, PSI compounded at +49.21% per year against +22.00% for SPY; over five years the annualized figures are +29.45% and +13.33% respectively. Across the full 21-year window we track, PSI has the edge at +17.40% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSI has been the more volatile fund, with annualized monthly volatility of 28.9% 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 -99.6% for PSI 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSI charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, PSI currently yields 0.04% against 1.01% for SPY.
Holdings Overlap
PSI and SPY share 9 holdings out of 526 unique holdings combined, representing a 8.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSI or SPY?
PSI has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, PSI or SPY?
Over the past year PSI returned +137.99% vs +20.62% for SPY, so PSI leads on 1-year performance. Over the longest common window we track (21 years), PSI annualized +17.40% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, PSI or SPY?
PSI has been the more volatile fund at 28.9% annualized versus 15.3% for SPY. Worst drawdown: PSI -99.6% vs SPY -56.5%.
Should I hold both PSI and SPY?
PSI and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSI and SPY?
PSI and SPY share 9 common holdings with a 8.5% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, PSI or SPY?
PSI yields 0.04% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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