PSF 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

MetricPSFSPYWinner
Expense Ratio1.59%0.09%
AUM$2,687.94$789.1B
Dividend Yield6.91%1.01%
Holdings332505
YTD Return+0.36%+13.50%
1Y Return+2.27%+23.56%
3Y Return (annualized)+9.30%+21.17%
5Y Return (annualized)-1.74%+13.46%
Volatility (annualized)16.6%15.3%
Max Drawdown-55.4%-56.5%
Fund FamilyCohen & Steers FundsState Street Investment Management
CategoryAllocation/BalancedEquity
InceptionNov 24, 2010Jan 22, 1993

PSF vs SPY Performance

Cohen & Steers Select Preferred and Income Fund Inc. (PSF) is a ETF from Cohen & Steers Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSF returned +2.27% while SPY returned +23.56%. Year to date, PSF is up 0.36% versus a gain of 13.50% for SPY.

Over three years, PSF compounded at +9.30% per year against +21.17% for SPY; over five years the annualized figures are -1.74% and +13.46% respectively. Across the full 16-year window we track, SPY has the edge at +8.85% annualized vs +1.20%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSF has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 15.3% for SPY. 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 -55.4% for PSF 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSF charges 1.59% per year while SPY charges 0.09%. On a $10,000 position that is $159 vs $9 annually, a gap of $150 per year that compounds over a long holding period. On income, PSF currently yields 6.91% against 1.01% for SPY.

Holdings Overlap

0.8%overlap

PSF and SPY share 5 holdings out of 685 unique holdings combined, representing a 0.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSFWeight in SPYDifference
FITB0.82%0.08%0.74%
NEE0.57%0.28%0.29%
MTB0.76%0.05%0.71%
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Frequently Asked Questions

Which is cheaper, PSF or SPY?

PSF has an expense ratio of 1.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $150 per year of difference.

Which performed better, PSF or SPY?

Over the past year PSF returned +2.27% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), PSF annualized +1.20% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, PSF or SPY?

PSF has been the more volatile fund at 16.6% annualized versus 15.3% for SPY. Worst drawdown: PSF -55.4% vs SPY -56.5%.

Should I hold both PSF and SPY?

PSF and SPY have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSF and SPY?

PSF and SPY share 5 common holdings with a 0.8% weight overlap. Combined, they hold 685 unique securities.

Which pays a higher dividend, PSF or SPY?

PSF yields 6.91% while SPY yields 1.01%, so PSF currently pays the higher dividend yield.

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