PSK vs VOO

PSK vs VOO

Which is better, PSK or VOO?

Preferred Stock against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: VOO

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

MetricPSKVOO
Expense Ratio0.45%0.03%Best
AUM$669M$997.4B
Dividend Yield7.28%1.04%
Holdings165509
YTD Return-4.69%+12.37%Best
1Y Return-6.99%+16.61%Best
3Y Return (annualized)+2.20%+21.37%Best
5Y Return (annualized)-1.79%+13.49%Best
Volatility (annualized)8.9%Best14.1%
Max Drawdown-34.1%Best-34.3%
$10,000 over 5 years$9,136$18,827Best
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryAllocation/BalancedEquity
StylePreferred StockLarge Cap Blend
InceptionSep 16, 2009Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 18, 2026 (16 years).

PSK vs VOO 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 VOO Performance

State Street SPDR ICE Preferred Securities ETF (PSK) is an ETF from State Street Investment Management and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PSK returned -6.99% while VOO returned +16.61%. Year to date, PSK is down 4.69% versus a gain of 12.37% for VOO.

Over three years, PSK compounded at +2.20% per year against +21.37% for VOO; over five years the annualized figures are -1.79% and +13.49% respectively. Across the full 16-year window we track, VOO has the edge at +13.39% annualized vs -0.80%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.56. They move together some of the time, and apart the rest.

Fees and Cost Over Time

PSK charges 0.45% per year while VOO charges 0.03%. On a $10,000 position that is $45 vs $3 annually, a gap of $42 per year that compounds over a long holding period. On income, PSK currently yields 7.28% against 1.04% for VOO.

Holdings Overlap

VOO already in PSK1.4%

At least 1.4% of VOO'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.

VOO and PSK share little of their money.

12 positions in common, counted across the 148 positions we hold weights for in PSK and 494 in VOO, against full books of 165 and 509.

Top Shared Holdings

StockWeight in PSKWeight in VOODifference
TBBAt&t Inc1.44%0.25%1.19%
ALLAllstate Corp.1.20%0.11%1.09%
MSMorgan Stanley0.56%0.39%0.17%
BKBank Of Ny Mellon Corp0.71%0.17%0.54%
USBUs Bancorp0.67%0.15%0.52%
CMSCms Energy Corp.0.75%0.03%0.72%
MTBM&T Bank Corporation 6.35 12/15/2173 6.35 2173-12-150.60%0.06%0.54%
FITBFifth Third Bancorp0.58%0.08%0.50%
ACGLArch Capital Group Ltd 5.450%0.44%0.05%0.39%
ETREntergy Louisiana Llc0.30%0.08%0.22%

You are not choosing between two funds in isolation.

Whichever of PSK and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PSKVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PSK or VOO?

PSK has an expense ratio of 0.45% while VOO charges 0.03%. VOO is the cheaper option, by $42 a year on a $10,000 investment.

Which performed better, PSK or VOO?

Over the past year PSK returned -6.99% vs +16.61% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PSK annualized -0.80% vs +13.39% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PSK or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs VOO -34.3%.

Should I hold both PSK and VOO?

PSK and VOO have a monthly-return correlation of 0.56, 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 VOO?

At least 1.4% of VOO'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 494 in VOO.

Which pays a higher dividend, PSK or VOO?

PSK yields 7.28% while VOO yields 1.04%, so PSK currently pays the higher dividend yield.

Is VOO better than PSK?

VOO has a lower expense ratio. VOO 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.