PSK vs SPY
State Street SPDR ICE Preferred Securities ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PSK or SPY?
Preferred Stock against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | PSK | SPY |
|---|---|---|
| Expense Ratio | 0.45% | 0.09%Best |
| AUM | $669M | $804.7B |
| Dividend Yield | 7.28% | 0.98% |
| Holdings | 165 | 505 |
| YTD Return | -4.69% | +12.09%Best |
| 1Y Return | -6.99% | +16.29%Best |
| 3Y Return (annualized) | +2.20% | +21.20%Best |
| 5Y Return (annualized) | -1.79% | +13.37%Best |
| Volatility (annualized) | 8.9%Best | 14.4% |
| Max Drawdown | -34.1%Tie | -34.1%Tie |
| $10,000 over 5 years | $9,136 | $18,728Best |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Sep 16, 2009 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 17, 2009 to Sep 18, 2026 (17 years).
PSK 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PSK vs SPY Performance
State Street SPDR ICE Preferred Securities ETF (PSK) is an ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PSK returned -6.99% while SPY returned +16.29%. Year to date, PSK is down 4.69% versus a gain of 12.09% for SPY.
Over three years, PSK compounded at +2.20% per year against +21.20% for SPY; over five years the annualized figures are -1.79% and +13.37% respectively. Across the full 17-year window we track, SPY has the edge at +12.75% annualized vs +0.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.4% 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 -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 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PSK charges 0.45% per year while SPY charges 0.09%. On a $10,000 position that is $45 vs $9 annually, a gap of $36 per year that compounds over a long holding period. On income, PSK currently yields 7.28% against 0.98% for SPY.
Holdings Overlap
At least 1.4% of SPY's money is in holdings PSK also owns.
Stated as a floor: for PSK, our book for it covers 90.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and PSK share little of their money.
12 positions in common, counted across the 148 positions we hold weights for in PSK and 504 in SPY, against full books of 165 and 505.
Top Shared Holdings
| Stock | Weight in PSK | Weight in SPY | Difference |
|---|---|---|---|
| TBBAt&t Inc | 1.44% | 0.27% | 1.17% |
| ALLAllstate Corp. | 1.20% | 0.10% | 1.10% |
| MSMorgan Stanley | 0.56% | 0.38% | 0.18% |
| BKBank Of Ny Mellon Corp | 0.71% | 0.17% | 0.54% |
| USBUs Bancorp | 0.67% | 0.14% | 0.53% |
| CMSCms Energy Corp. | 0.75% | 0.03% | 0.72% |
| MTBM&T Bank Corporation 6.35 12/15/2173 6.35 2173-12-15 | 0.60% | 0.05% | 0.55% |
| FITBFifth Third Bancorp | 0.58% | 0.07% | 0.51% |
| ACGLArch Capital Group Ltd 5.450% | 0.44% | 0.05% | 0.39% |
| ETREntergy Louisiana Llc | 0.30% | 0.07% | 0.23% |
You are not choosing between two funds in isolation.
Whichever of PSK and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PSK or SPY?
PSK has an expense ratio of 0.45% while SPY charges 0.09%. SPY is the cheaper option, by $36 a year on a $10,000 investment.
Which performed better, PSK or SPY?
Over the past year PSK returned -6.99% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), PSK annualized +0.11% vs +12.75% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PSK or SPY?
SPY has been the more volatile fund at 14.4% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs SPY -34.1%.
Should I hold both PSK and SPY?
PSK and SPY have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PSK and SPY?
At least 1.4% of SPY's money is in holdings PSK also owns. Our book for PSK is partial, so the real figure is this or higher. They hold 12 positions in common, counted across the 148 positions we hold weights for in PSK and 504 in SPY.
Which pays a higher dividend, PSK or SPY?
PSK yields 7.28% while SPY yields 0.98%, so PSK currently pays the higher dividend yield.
Is SPY better than PSK?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.