PSK vs. VRP
Compare and contrast key facts about SPDR ICE Preferred Securities ETF (PSK) and Invesco Variable Rate Preferred ETF (VRP).
PSK and VRP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PSK is a passively managed fund by State Street that tracks the performance of the PSK-US - ICE Exchange-Listed Fixed& Adjustable Rate Preferred Securities Index. It was launched on Sep 16, 2009. VRP is a passively managed fund by Invesco that tracks the performance of the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. It was launched on May 1, 2014. Both PSK and VRP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PSK or VRP.
Key characteristics
| PSK | VRP | |
|---|---|---|
| YTD Return | 2.30% | 5.10% |
| 1Y Return | 9.66% | 17.59% |
| 3Y Return (Ann) | -2.61% | 2.55% |
| 5Y Return (Ann) | 0.98% | 4.52% |
| 10Y Return (Ann) | 3.43% | 4.70% |
| Sharpe Ratio | 1.00 | 3.84 |
| Daily Std Dev | 10.51% | 4.66% |
| Max Drawdown | -30.10% | -46.04% |
| Current Drawdown | -10.12% | -0.58% |
Correlation
The correlation between PSK and VRP is 0.54, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
PSK vs. VRP - Performance Comparison
In the year-to-date period, PSK achieves a 2.30% return, which is significantly lower than VRP's 5.10% return. Over the past 10 years, PSK has underperformed VRP with an annualized return of 3.43%, while VRP has yielded a comparatively higher 4.70% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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PSK vs. VRP - Expense Ratio Comparison
PSK has a 0.45% expense ratio, which is lower than VRP's 0.50% expense ratio.
Risk-Adjusted Performance
PSK vs. VRP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR ICE Preferred Securities ETF (PSK) and Invesco Variable Rate Preferred ETF (VRP). 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.
Dividends
PSK vs. VRP - Dividend Comparison
PSK's dividend yield for the trailing twelve months is around 6.43%, more than VRP's 6.32% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PSK SPDR ICE Preferred Securities ETF | 6.43% | 6.44% | 6.55% | 5.03% | 5.49% | 5.44% | 6.47% | 6.91% | 5.92% | 5.35% | 5.65% | 7.73% |
VRP Invesco Variable Rate Preferred ETF | 6.32% | 6.61% | 5.38% | 4.25% | 4.17% | 5.15% | 5.28% | 4.69% | 5.10% | 5.02% | 3.04% | 0.00% |
Drawdowns
PSK vs. VRP - Drawdown Comparison
The maximum PSK drawdown since its inception was -30.10%, smaller than the maximum VRP drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for PSK and VRP. For additional features, visit the drawdowns tool.
Volatility
PSK vs. VRP - Volatility Comparison
SPDR ICE Preferred Securities ETF (PSK) has a higher volatility of 3.75% compared to Invesco Variable Rate Preferred ETF (VRP) at 1.40%. This indicates that PSK's price experiences larger fluctuations and is considered to be riskier than VRP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.