PSQO vs SPY
PSQO vs SPY
Palmer Square Credit Opportunities 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 | PSQO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.09% | |
| AUM | $271M | $789.1B | |
| Dividend Yield | 4.41% | 1.01% | |
| Holdings | 359 | 505 | |
| YTD Return | +2.44% | +11.49% | |
| 1Y Return | +5.32% | +21.37% | |
| 3Y Return (annualized) | - | +20.76% | |
| 5Y Return (annualized) | - | +12.94% | |
| Volatility (annualized) | 1.1% | 15.3% | |
| Max Drawdown | -0.8% | -56.5% | |
| Fund Family | Palmer Square Capital Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Jan 22, 1993 |
PSQO vs SPY Performance
Palmer Square Credit Opportunities ETF (PSQO) 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 PSQO returned +5.32% while SPY returned +21.37%. Year to date, PSQO is up 2.44% 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 1.1% for PSQO. 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 -0.8% for PSQO 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSQO charges 0.52% per year while SPY charges 0.09%. On a $10,000 position that is $52 vs $9 annually, a gap of $43 per year that compounds over a long holding period. On income, PSQO currently yields 4.41% against 1.01% for SPY.
Holdings Overlap
PSQO and SPY share 1 holdings out of 700 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSQO | Weight in SPY | Difference |
|---|---|---|---|
| KDP | 0.29% | 0.07% | 0.22% |
Frequently Asked Questions
Which is cheaper, PSQO or SPY?
PSQO has an expense ratio of 0.52% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, PSQO or SPY?
Over the past year PSQO returned +5.32% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), PSQO annualized +6.09% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, PSQO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.1% for PSQO. Worst drawdown: PSQO -0.8% vs SPY -56.5%.
Should I hold both PSQO and SPY?
PSQO and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSQO and SPY?
PSQO and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 700 unique securities.
Which pays a higher dividend, PSQO or SPY?
PSQO yields 4.41% while SPY yields 1.01%, so PSQO currently pays the higher dividend yield.
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