PSH vs SPY
PSH vs SPY
PGIM Short Duration High Yield 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 | PSH | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.09% | |
| AUM | $173M | $789.1B | |
| Dividend Yield | 7.18% | 1.01% | |
| Holdings | 604 | 505 | |
| YTD Return | -1.49% | +11.49% | |
| 1Y Return | +0.43% | +21.37% | |
| 3Y Return (annualized) | - | +20.76% | |
| 5Y Return (annualized) | - | +12.94% | |
| Volatility (annualized) | 8.7% | 15.3% | |
| Max Drawdown | -14.0% | -56.5% | |
| Fund Family | PGIM Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 14, 2023 | Jan 22, 1993 |
PSH vs SPY Performance
PGIM Short Duration High Yield ETF (PSH) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSH returned +0.43% while SPY returned +21.37%. Year to date, PSH is down 1.49% versus a gain of 11.49% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.7% for PSH. 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 -14.0% for PSH 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSH charges 0.45% per year while SPY charges 0.09%. On a $10,000 position that is $45 vs $9 annually, a gap of $36 per year that compounds over a long holding period. On income, PSH currently yields 7.18% against 1.01% for SPY.
Holdings Overlap
PSH and SPY share 1 holdings out of 866 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSH | Weight in SPY | Difference |
|---|---|---|---|
| GEN | 0.53% | 0.02% | 0.51% |
Frequently Asked Questions
Which is cheaper, PSH or SPY?
PSH has an expense ratio of 0.45% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, PSH or SPY?
Over the past year PSH returned +0.43% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), PSH annualized -0.48% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, PSH or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.7% for PSH. Worst drawdown: PSH -14.0% vs SPY -56.5%.
Should I hold both PSH and SPY?
PSH and SPY have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSH and SPY?
PSH and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 866 unique securities.
Which pays a higher dividend, PSH or SPY?
PSH yields 7.18% while SPY yields 1.01%, so PSH currently pays the higher dividend yield.
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