PSMD vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricPSMDSPYWinner
Expense Ratio0.49%0.09%
AUM$93M$789.1B
Dividend Yield0.00%1.01%
Holdings6505
YTD Return+7.58%+13.75%
1Y Return+12.85%+22.91%
3Y Return (annualized)+12.43%+21.67%
5Y Return (annualized)+9.36%+13.32%
Volatility (annualized)7.5%15.3%
Max Drawdown-12.0%-56.5%
Fund FamilyPacer ETFsState Street Investment Management
CategoryAllocation/BalancedEquity
InceptionDec 22, 2020Jan 22, 1993

PSMD vs SPY Performance

Pacer Swan SOS Moderate (January) ETF (PSMD) is a ETF from Pacer ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSMD returned +12.85% while SPY returned +22.91%. Year to date, PSMD is up 7.58% versus a gain of 13.75% for SPY.

Over three years, PSMD compounded at +12.43% per year against +21.67% for SPY; over five years the annualized figures are +9.36% and +13.32% respectively. Across the full 6-year window we track, PSMD has the edge at +9.93% annualized vs +8.85%. 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 7.5% for PSMD. 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 -12.0% for PSMD 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PSMD charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, PSMD currently yields 0.00% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

PSMD and SPY share 0 holdings out of 504 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, PSMD or SPY?

PSMD has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, PSMD or SPY?

Over the past year PSMD returned +12.85% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), PSMD annualized +9.93% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, PSMD or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 7.5% for PSMD. Worst drawdown: PSMD -12.0% vs SPY -56.5%.

Should I hold both PSMD and SPY?

PSMD and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between PSMD and SPY?

PSMD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.

Which pays a higher dividend, PSMD or SPY?

PSMD yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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