PSET vs SPY
PSET vs SPY
Principal Quality ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PSET | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $28M | $789.1B | |
| Dividend Yield | 0.63% | 1.01% | |
| Holdings | 73 | 505 | |
| YTD Return | +7.34% | +13.79% | |
| 1Y Return | +10.43% | +23.66% | |
| 3Y Return (annualized) | +13.38% | +21.40% | |
| 5Y Return (annualized) | +8.92% | +13.37% | |
| Volatility (annualized) | 15.1% | 15.3% | |
| Max Drawdown | -34.8% | -56.5% | |
| Fund Family | Principal Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 21, 2016 | Jan 22, 1993 |
PSET vs SPY Performance
Principal Quality ETF (PSET) is a ETF from Principal Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSET returned +10.43% while SPY returned +23.66%. Year to date, PSET is up 7.34% versus a gain of 13.79% for SPY.
Over three years, PSET compounded at +13.38% per year against +21.40% for SPY; over five years the annualized figures are +8.92% and +13.37% respectively. Across the full 10-year window we track, PSET has the edge at +12.60% 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 15.1% for PSET. 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 -34.8% for PSET 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PSET charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, PSET currently yields 0.63% against 1.01% for SPY.
Holdings Overlap
PSET and SPY share 70 holdings out of 506 unique holdings combined, representing a 32.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSET | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 6.19% | 7.31% | 1.12% |
| AAPL | 6.28% | 7.09% | 0.81% |
| MSFT | 3.38% | 4.43% | 1.05% |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| V | Pro | Pro | Pro |
| PANW | Pro | Pro | Pro |
| AMAT | Pro | Pro | Pro |
See all 10 holdings PSET shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, PSET or SPY?
PSET has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, PSET or SPY?
Over the past year PSET returned +10.43% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), PSET annualized +12.60% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PSET or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.1% for PSET. Worst drawdown: PSET -34.8% vs SPY -56.5%.
Should I hold both PSET and SPY?
PSET and SPY have a monthly-return correlation of 0.94, 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 PSET and SPY?
PSET and SPY share 70 common holdings with a 32.6% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, PSET or SPY?
PSET yields 0.63% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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