PSIL vs SPY

Quick Verdict

SPY has a lower expense ratio. PSIL delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: PSILMore Diversified: SPY

Side-by-Side Comparison

MetricPSILSPYWinner
Expense Ratio1.00%0.09%
AUM$49M$789.1B
Dividend Yield7.19%1.01%
Holdings31505
YTD Return+44.83%+13.39%
1Y Return+70.39%+22.52%
3Y Return (annualized)+16.60%+21.36%
5Y Return (annualized)-22.40%+13.19%
Volatility (annualized)49.7%15.3%
Max Drawdown-92.7%-56.5%
Fund FamilyAdvisor SharesState Street Investment Management
CategoryEquityEquity
InceptionSep 15, 2021Jan 22, 1993

PSIL vs SPY Performance

ADVISORSHARES PSYCHEDELICS ETF (PSIL) is a ETF from Advisor Shares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSIL returned +70.39% while SPY returned +22.52%. Year to date, PSIL is up 44.83% versus a gain of 13.39% for SPY.

Over three years, PSIL compounded at +16.60% per year against +21.36% for SPY; over five years the annualized figures are -22.40% and +13.19% respectively. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs -22.40%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSIL has been the more volatile fund, with annualized monthly volatility of 49.7% 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 -92.7% for PSIL 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSIL charges 1.00% per year while SPY charges 0.09%. On a $10,000 position that is $100 vs $9 annually, a gap of $91 per year that compounds over a long holding period. On income, PSIL currently yields 7.19% against 1.01% for SPY.

Holdings Overlap

3.1%overlap

PSIL and SPY share 3 holdings out of 529 unique holdings combined, representing a 3.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSILWeight in SPYDifference
ABBV4.53%0.69%3.84%
JNJ3.99%0.96%3.03%
LLY1.54%1.46%0.08%

Frequently Asked Questions

Which is cheaper, PSIL or SPY?

PSIL has an expense ratio of 1.00% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, PSIL or SPY?

Over the past year PSIL returned +70.39% vs +22.52% for SPY, so PSIL leads on 1-year performance. Over the longest common window we track (5 years), PSIL annualized -22.40% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, PSIL or SPY?

PSIL has been the more volatile fund at 49.7% annualized versus 15.3% for SPY. Worst drawdown: PSIL -92.7% vs SPY -56.5%.

Should I hold both PSIL and SPY?

PSIL and SPY have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSIL and SPY?

PSIL and SPY share 3 common holdings with a 3.1% weight overlap. Combined, they hold 529 unique securities.

Which pays a higher dividend, PSIL or SPY?

PSIL yields 7.19% while SPY yields 1.01%, so PSIL currently pays the higher dividend yield.

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