PSP vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricPSPVOOWinner
Expense Ratio1.80%0.03%
AUM$230M$979.0B
Dividend Yield6.40%1.09%
Holdings73509
YTD Return-3.81%+13.72%
1Y Return-6.02%+21.63%
3Y Return (annualized)+12.07%+21.55%
5Y Return (annualized)+0.66%+13.26%
Volatility (annualized)25.3%14.1%
Max Drawdown-87.1%-34.3%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 24, 2006Sep 7, 2010

PSP vs VOO Performance

Invesco Global Listed Private Equity ETF (PSP) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PSP returned -6.02% while VOO returned +21.63%. Year to date, PSP is down 3.81% versus a gain of 13.72% for VOO.

Over three years, PSP compounded at +12.07% per year against +21.55% for VOO; over five years the annualized figures are +0.66% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs -1.76%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSP has been the more volatile fund, with annualized monthly volatility of 25.3% compared with 14.1% for VOO. 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 -87.1% for PSP and -34.3% for VOO. 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PSP charges 1.80% per year while VOO charges 0.03%. On a $10,000 position that is $180 vs $3 annually, a gap of $177 per year that compounds over a long holding period. On income, PSP currently yields 6.40% against 1.09% for VOO.

Holdings Overlap

0.2%overlap

PSP and VOO share 2 holdings out of 567 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSPWeight in VOODifference
BX4.92%0.14%4.78%
KKR4.70%0.10%4.60%

Frequently Asked Questions

Which is cheaper, PSP or VOO?

PSP has an expense ratio of 1.80% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $177 per year of difference.

Which performed better, PSP or VOO?

Over the past year PSP returned -6.02% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PSP annualized -1.76% vs +13.56% for VOO. Past performance does not guarantee future results.

Which is riskier, PSP or VOO?

PSP has been the more volatile fund at 25.3% annualized versus 14.1% for VOO. Worst drawdown: PSP -87.1% vs VOO -34.3%.

Should I hold both PSP and VOO?

PSP and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSP and VOO?

PSP and VOO share 2 common holdings with a 0.2% weight overlap. Combined, they hold 567 unique securities.

Which pays a higher dividend, PSP or VOO?

PSP yields 6.40% while VOO yields 1.09%, so PSP currently pays the higher dividend yield.

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