PSQA vs SPY
PSQA vs SPY
Palmer Square CLO Senior Debt 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 | PSQA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.21% | 0.09% | |
| AUM | $147M | $789.1B | |
| Dividend Yield | 4.77% | 1.01% | |
| Holdings | 90 | 505 | |
| YTD Return | +3.14% | +13.28% | |
| 1Y Return | +5.63% | +23.94% | |
| 3Y Return (annualized) | - | +21.07% | |
| 5Y Return (annualized) | - | +13.27% | |
| Volatility (annualized) | 1.2% | 15.3% | |
| Max Drawdown | -1.3% | -56.5% | |
| Fund Family | Palmer Square Capital Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Jan 22, 1993 |
PSQA vs SPY Performance
Palmer Square CLO Senior Debt ETF (PSQA) is a ETF from Palmer Square Capital Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSQA returned +5.63% while SPY returned +23.94%. Year to date, PSQA is up 3.14% versus a gain of 13.28% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.2% for PSQA. 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 -1.3% for PSQA 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSQA charges 0.21% per year while SPY charges 0.09%. On a $10,000 position that is $21 vs $9 annually, a gap of $12 per year that compounds over a long holding period. On income, PSQA currently yields 4.77% against 1.01% for SPY.
Holdings Overlap
PSQA and SPY share 0 holdings out of 520 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSQA or SPY?
PSQA has an expense ratio of 0.21% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, PSQA or SPY?
Over the past year PSQA returned +5.63% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), PSQA annualized +5.75% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, PSQA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.2% for PSQA. Worst drawdown: PSQA -1.3% vs SPY -56.5%.
Should I hold both PSQA and SPY?
PSQA and SPY have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSQA and SPY?
PSQA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 520 unique securities.
Which pays a higher dividend, PSQA or SPY?
PSQA yields 4.77% while SPY yields 1.01%, so PSQA currently pays the higher dividend yield.
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