PSK vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricPSKVTIWinner
Expense Ratio0.45%0.03%
AUM$691M$663.5B
Dividend Yield7.06%1.07%
Holdings1613,543
YTD Return-3.57%+13.87%
1Y Return-1.56%+23.31%
3Y Return (annualized)+2.75%+21.17%
5Y Return (annualized)-1.49%+12.23%
Volatility (annualized)8.9%15.3%
Max Drawdown-34.1%-56.6%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryAllocation/BalancedEquity
InceptionSep 16, 2009May 24, 2001

PSK vs VTI Performance

State Street SPDR ICE Preferred Securities ETF (PSK) is a ETF from State Street Investment Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PSK returned -1.56% while VTI returned +23.31%. Year to date, PSK is down 3.57% versus a gain of 13.87% for VTI.

Over three years, PSK compounded at +2.75% per year against +21.17% for VTI; over five years the annualized figures are -1.49% and +12.23% respectively. Across the full 17-year window we track, VTI has the edge at +8.13% annualized vs +0.18%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI 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 -56.6% for VTI. 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 VTI 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 7.06% against 1.07% for VTI.

Holdings Overlap

2.8%overlap

PSK and VTI share 22 holdings out of 2905 unique holdings combined, representing a 2.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSKWeight in VTIDifference
JPM:US0.43%1.11%0.68%
NEE1.25%0.25%1.00%
XEL1.26%0.07%1.19%
SCHWProProPro
BACProProPro
SOProProPro
MSProProPro
DTEG.N:BEProProPro
USBProProPro
CMSProProPro
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Frequently Asked Questions

Which is cheaper, PSK or VTI?

PSK has an expense ratio of 0.45% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $42 per year of difference.

Which performed better, PSK or VTI?

Over the past year PSK returned -1.56% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), PSK annualized +0.18% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, PSK or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs VTI -56.6%.

Should I hold both PSK and VTI?

PSK and VTI 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 VTI?

PSK and VTI share 22 common holdings with a 2.8% weight overlap. Combined, they hold 2905 unique securities.

Which pays a higher dividend, PSK or VTI?

PSK yields 7.06% while VTI yields 1.07%, so PSK currently pays the higher dividend yield.

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