PSTP 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

MetricPSTPSPYWinner
Expense Ratio0.89%0.09%
AUM$132M$789.1B
Dividend Yield0.00%1.01%
Holdings6505
YTD Return+6.04%+14.47%
1Y Return+9.67%+21.96%
3Y Return (annualized)+11.15%+21.70%
5Y Return (annualized)-+13.30%
Volatility (annualized)8.3%15.3%
Max Drawdown-12.5%-56.5%
Fund FamilyInnovator ETFs TrustState Street Investment Management
CategoryAlternativeEquity
InceptionMar 7, 2022Jan 22, 1993

PSTP vs SPY Performance

Innovator Power Buffer Step Up Strategy ETF (PSTP) is a ETF from Innovator ETFs Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSTP returned +9.67% while SPY returned +21.96%. Year to date, PSTP is up 6.04% versus a gain of 14.47% for SPY.

Over three years, PSTP compounded at +11.15% per year against +21.70% for SPY. Across the full 4-year window we track, PSTP has the edge at +9.06% annualized vs +8.87%. 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 8.3% for PSTP. 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 -12.5% for PSTP 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PSTP charges 0.89% per year while SPY charges 0.09%. On a $10,000 position that is $89 vs $9 annually, a gap of $80 per year that compounds over a long holding period. On income, PSTP currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, PSTP or SPY?

PSTP has an expense ratio of 0.89% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $80 per year of difference.

Which performed better, PSTP or SPY?

Over the past year PSTP returned +9.67% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), PSTP annualized +9.06% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, PSTP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 8.3% for PSTP. Worst drawdown: PSTP -12.5% vs SPY -56.5%.

Should I hold both PSTP and SPY?

PSTP and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, PSTP or SPY?

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

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