PSK vs VYM
State Street SPDR ICE Preferred Securities ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PSK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.04% | |
| AUM | $686M | $81.6B | |
| Dividend Yield | 7.13% | 2.24% | |
| Holdings | 161 | 616 | |
| YTD Return | -3.25% | +14.84% | |
| 1Y Return | -2.56% | +20.88% | |
| 3Y Return (annualized) | +3.25% | +18.34% | |
| 5Y Return (annualized) | -1.48% | +12.04% | |
| Volatility (annualized) | 8.9% | 14.6% | |
| Max Drawdown | -34.1% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 16, 2009 | Nov 10, 2006 |
PSK vs VYM Performance
State Street SPDR ICE Preferred Securities ETF (PSK) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSK returned -2.56% while VYM returned +20.88%. Year to date, PSK is down 3.25% versus a gain of 14.84% for VYM.
Over three years, PSK compounded at +3.25% per year against +18.34% for VYM; over five years the annualized figures are -1.48% and +12.04% respectively. Across the full 17-year window we track, VYM has the edge at +7.01% annualized vs +0.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSK charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, PSK currently yields 7.13% against 2.24% for VYM.
Holdings Overlap
PSK and VYM share 14 holdings out of 736 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSK or VYM?
PSK has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PSK or VYM?
Over the past year PSK returned -2.56% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), PSK annualized +0.20% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, PSK or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.9% for PSK. Worst drawdown: PSK -34.1% vs VYM -58.8%.
Should I hold both PSK and VYM?
PSK and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSK and VYM?
PSK and VYM share 14 common holdings with a 4.0% weight overlap. Combined, they hold 736 unique securities.
Which pays a higher dividend, PSK or VYM?
PSK yields 7.13% while VYM yields 2.24%, so PSK currently pays the higher dividend yield.
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