PSK vs SPY
State Street SPDR ICE Preferred Securities ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PSK | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.09% | |
| AUM | $691M | $789.1B | |
| Dividend Yield | 7.06% | 1.01% | |
| Holdings | 161 | 505 | |
| YTD Return | -3.60% | +13.75% | |
| 1Y Return | -1.59% | +22.91% | |
| 3Y Return (annualized) | +2.75% | +21.67% | |
| 5Y Return (annualized) | -1.49% | +13.32% | |
| Volatility (annualized) | 8.9% | 15.3% | |
| Max Drawdown | -34.1% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 16, 2009 | Jan 22, 1993 |
PSK vs SPY Performance
State Street SPDR ICE Preferred Securities ETF (PSK) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSK returned -1.59% while SPY returned +22.91%. Year to date, PSK is down 3.60% versus a gain of 13.75% for SPY.
Over three years, PSK compounded at +2.75% per year against +21.67% for SPY; over five years the annualized figures are -1.49% and +13.32% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs +0.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
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 7.06% against 1.01% for SPY.
Holdings Overlap
PSK and SPY share 20 holdings out of 627 unique holdings combined, representing a 3.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $36 per year of difference.
Which performed better, PSK or SPY?
Over the past year PSK returned -1.59% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), PSK annualized +0.18% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PSK or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs SPY -56.5%.
Should I hold both PSK and SPY?
PSK and SPY have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSK and SPY?
PSK and SPY share 20 common holdings with a 3.2% weight overlap. Combined, they hold 627 unique securities.
Which pays a higher dividend, PSK or SPY?
PSK yields 7.06% while SPY yields 1.01%, so PSK currently pays the higher dividend yield.
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