PSET vs. VTI

Last updated Jun 5, 2026

PSET (Principal Quality ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - PSET is a Large Cap Growth Equities fund tracking the NASDAQ US Price Setters, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, PSET returned 12.82%/yr vs 15.04%/yr for VTI. A 0.72 correlation means they provide meaningful diversification when combined. PSET charges 0.15%/yr vs 0.03%/yr for VTI.

Performance

PSET vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Quality ETF (PSET) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSET achieves a 0.31% return, which is significantly lower than VTI's 11.72% return. Over the past 10 years, PSET has underperformed VTI with an annualized return of 12.82%, while VTI has yielded a comparatively higher 15.04% annualized return.

PSET

• 1D: 0.80%
• 1M: 2.98%
• YTD: 0.31%
• 6M: 0.01%
• 1Y: 8.25%
• 3Y*: 13.47%
• 5Y*: 9.03%
• 10Y*: 12.82%

VTI

• 1D: 0.47%
• 1M: 4.59%
• YTD: 11.72%
• 6M: 11.43%
• 1Y: 28.79%
• 3Y*: 22.37%
• 5Y*: 12.80%
• 10Y*: 15.04%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PSET vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSET Principal Quality ETF	0.31%	7.27%	17.65%	24.07%	-16.52%	29.59%	16.20%	34.85%	-2.29%	24.63%
VTI Vanguard Total Stock Market ETF	11.72%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between PSET and VTI is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Mar 23, 2016	0.72

The correlation between PSET and VTI shifts across timeframes, from 0.72 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.

PSET vs. VTI - Sectors Allocation Comparison

Sectors	PSET	VTI
Technology	37.9%	33.5%
Industrials	19.1%	9.8%
Financial Services	14.3%	12.0%
Healthcare	10.8%	9.2%
Communication Services	6.7%	10.3%
Consumer Cyclical	5.4%	10.0%
Basic Materials	3.3%	2.0%
Energy	1.4%	3.7%
Consumer Defensive	1.1%	4.7%
Real Estate	-	2.4%
Utilities	-	2.3%

Return for Risk

PSET vs. VTI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PSET

PSET Risk / Return Rank: 19
PSET Sharpe Ratio Rank: 21
PSET Sortino Ratio Rank: 20
PSET Omega Ratio Rank: 19
PSET Calmar Ratio Rank: 17
PSET Martin Ratio Rank: 20

VTI

VTI Risk / Return Rank: 73
VTI Sharpe Ratio Rank: 74
VTI Sortino Ratio Rank: 73
VTI Omega Ratio Rank: 73
VTI Calmar Ratio Rank: 66
VTI Martin Ratio Rank: 78

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PSET vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Quality ETF (PSET) and Vanguard Total Stock Market ETF (VTI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PSET	VTI	Difference
Sharpe ratio: Return per unit of total volatility	0.65	2.38	-1.72
Sortino ratio: Return per unit of downside risk	1.00	3.24	-2.25
Omega ratio: Gain probability vs. loss probability	1.12	1.43	-0.31
Calmar ratio: Return relative to maximum drawdown	0.64	3.24	-2.60
Martin ratio: Return relative to average drawdown	2.16	14.94	-12.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSET vs. VTI - Sharpe Ratio Comparison

The current PSET Sharpe Ratio is 0.65, which is lower than the VTI Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of PSET and VTI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PSET	VTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.65	2.38	-1.72
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.74	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.71	0.82	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.51	+0.21

Drawdowns

PSET vs. VTI - Drawdown Comparison

The maximum PSET drawdown since its inception was -34.74%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for PSET and VTI.

Drawdown Indicators

	PSET	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-34.74%	-55.45%	+20.71%
Max Drawdown (1Y) Largest decline over 1 year	-12.94%	-8.92%	-4.02%
Max Drawdown (3Y) Largest decline over 3 years	-21.96%	-19.30%	-2.66%
Max Drawdown (5Y) Largest decline over 5 years	-25.61%	-25.36%	-0.25%
Max Drawdown (10Y) Largest decline over 10 years	-34.74%	-35.00%	+0.26%
Current Drawdown Current decline from peak	-1.81%	-0.26%	-1.55%
Average Drawdown Average peak-to-trough decline	-4.59%	-8.03%	+3.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	1.93%	+1.89%

Volatility

PSET vs. VTI - Volatility Comparison

Principal Quality ETF (PSET) has a higher volatility of 3.06% compared to Vanguard Total Stock Market ETF (VTI) at 2.90%. This indicates that PSET's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSET	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	2.90%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	9.13%	+0.57%
Volatility (1Y) Calculated over the trailing 1-year period	12.66%	12.17%	+0.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.51%	17.40%	+0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.05%	18.30%	-0.25%

PSET vs. VTI - Expense Ratio Comparison

PSET has a 0.15% expense ratio, which is higher than VTI's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PSET vs. VTI - Dividend Comparison

PSET's dividend yield for the trailing twelve months is around 0.62%, less than VTI's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSET Principal Quality ETF	0.62%	0.59%	0.69%	0.85%	1.47%	0.89%	1.09%	1.52%	1.33%	1.02%	1.26%	0.00%
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both PSET and VTI in my portfolio?

With a correlation of 0.91, PSET and VTI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PSET or VTI?

PSET has higher volatility (3.06%) compared to VTI (2.90%). In terms of maximum drawdown, PSET dropped -34.74% vs VTI's -55.45%.

Which ETF is better, PSET or VTI?

On 10-year performance, VTI leads with 15.04% vs 12.82% for PSET. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 2.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSET or VTI?

Over the 10-year period, VTI has performed better with a 15.04% return vs 12.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSET or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.15% for PSET.

Which ETF pays a higher dividend yield, PSET or VTI?

VTI has the higher dividend yield at 1.01%, compared with 0.62% for PSET.

What is the main difference between PSET and VTI?

PSET is categorized as Large Cap Growth Equities, while VTI is Large Cap Blend Equities. PSET tracks NASDAQ US Price Setters, while VTI tracks CRSP US Total Market Index. They also come from different issuers: Principal and Vanguard. Their fees differ too: 0.15% for PSET and 0.03% for VTI.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (2.38 vs 0.65), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.