PSK vs QQQ
State Street SPDR ICE Preferred Securities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PSK offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | PSK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $691M | $455.8B | |
| Dividend Yield | 7.06% | 0.41% | |
| Holdings | 161 | 108 | |
| YTD Return | -3.33% | +19.68% | |
| 1Y Return | -2.37% | +26.75% | |
| 3Y Return (annualized) | +2.84% | +26.25% | |
| 5Y Return (annualized) | -1.53% | +15.39% | |
| Volatility (annualized) | 8.9% | 30.6% | |
| Max Drawdown | -34.1% | -83.0% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 16, 2009 | Mar 10, 1999 |
PSK vs QQQ Performance
State Street SPDR ICE Preferred Securities ETF (PSK) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSK returned -2.37% while QQQ returned +26.75%. Year to date, PSK is down 3.33% versus a gain of 19.68% for QQQ.
Over three years, PSK compounded at +2.84% per year against +26.25% for QQQ; over five years the annualized figures are -1.53% and +15.39% respectively. Across the full 17-year window we track, QQQ has the edge at +13.15% annualized vs +0.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.9% for PSK. 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 -34.1% for PSK and -83.0% for QQQ. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSK charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, PSK currently yields 7.06% against 0.41% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, PSK or QQQ?
PSK has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, PSK or QQQ?
Over the past year PSK returned -2.37% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), PSK annualized +0.20% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs QQQ -83.0%.
Should I hold both PSK and QQQ?
PSK and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSK and QQQ?
PSK and QQQ share 2 common holdings with a 0.7% weight overlap. Combined, they hold 245 unique securities.
Which pays a higher dividend, PSK or QQQ?
PSK yields 7.06% while QQQ yields 0.41%, so PSK currently pays the higher dividend yield.
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