# How Public Service Enterprise Group (PEG) compares with the whole market and its popular alternatives

> Source: BetterThanSPY research, https://betterthanspy.com/research/peg
> Data as of November 2, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

## The short answer

- **Returns:** +6.6% a year over the past 5 years, against +11.7% for the S&P 500. $10,000 grew to $25,700 over 10 years, against $42,000 in SPY.
- **Risk:** More volatile than the S&P 500: volatility 20.6% against 17.2%; worst decline in 10 years −40.8% against −33.7%.
- **Better options:** 8 of its 24 popular alternatives earned more with less volatility over the past 5 years, including ED, WEC and AEE.
- **Track record:** PEG beat the S&P 500 in 14 of 29 full calendar years, and fell less than it in 4 of 10 major crashes.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on PEG alone. It places PEG (Public Service Enterprise Group Incorporated) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where PEG stands in the market, and of the alternatives worth a closer look.

Period covered: PEG's full trading record, from October 1986 through October 2026. All returns include reinvested dividends. Data as of November 2, 2026.

## Key findings

- **Right now:** PEG has gone against the market, falling 5.9% over the past 6 months while the S&P 500 rose 5.3%. Not every peer went the same way. Over the past 6 months, DUK (Duke Energy) rose 2.5% and PCG (PG&E) fell 17.5%.
- **Stock or market?:** PEG fell 2.0% over the past 3 months, in line with the electric utilities ETF XLU (State Street Utilities Select Sector SPDR ETF), which fell 0.8%. The S&P 500 fell 0.5%. PEG rose 9.3% last month as the S&P 500 fell 2.3% and the Nasdaq 100 fell 9.1%.
- **Past 1 to 3 years:** Over the past year, PEG fell 5.4% while the S&P 500 rose 11.3%. The same gap shows up over 3 years (29.4% against 81.0%). PEG led its electric utility peers in 2023, then fell behind SO (Southern) and DUK (Duke Energy) in 2025.
- **Long term:** PEG turned $10,000 into $25,700 over the past decade, against $42,000 in the S&P 500.
- **In a crash:** PEG fell further than the S&P 500 in three of the last four sell-offs, including the Covid crash (38.0% against 33.7%). That said, in the late-2018 sell-off, PEG fell 10.8%, against 19.3% for the S&P 500. That was more than SO (Southern, 9.6%) but less than PCG (PG&E, 63.8%).
- **Diversification:** Over 10 years PEG kept more of the market's gains than of its losses: 52% of the S&P 500's gains in rising months and 41% of its losses in falling ones, with a beta of 0.52. PEG is some diversification, but not a hedge: a correlation of 0.40 with the S&P 500 over 5 years and 0.40 with the total US market, more closely than 54% of stocks worth at least $300 million.
- **Better options**
  - **Popular alternatives:** ED (Consolidated Edison), WEC (WEC Energy Group) and AEE (Ameren) earned more than PEG with less volatility over the past 5 years. ED returned 13.0% a year at 18.9% volatility, against 6.6% a year at 20.6%.
  - **Nearby categories and themes:** ATO (Atmos Energy, gas utilities) and FTS (Fortis, electric utilities) earned more than PEG with less volatility over the past 5 years. ATO returned 16.1% a year at 18.4% volatility, against 6.6% a year at 20.6%.
  - **Whole market:** 396 of the 3,627 stocks and funds worth at least $500 million earned more than PEG with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-A (Berkshire Hathaway).

## How much would $10,000 in PEG have grown?

This chart tracks a hypothetical $10,000 investment in PEG over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of PEG over the same span and PEG's popular alternatives, among those that traded for the entire period.

- $10,000 invested in PEG at the end of October 1997 would have grown to $192,462 by October 2026, more than the $135,020 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of PEG, and NEE finished highest, at $328,276.

## PEG at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- PEG's deepest decline since it began trading in 1986 was 54.3%, from May 2001 to October 2002. It took 15 months from the low to climb back to its old high.
- Over 29 full calendar years, PEG's best was 2007, when it returned 52.1%, and its worst was 2008, when it lost 38.6%. It lost money in nine of those years.
- PEG is 16.1% below its all-time high.

- Type: Stock, Utilities (Regulated Electric)
- Trading since: October 31, 1986
- Market value: $37B
- Volatility (5 years): 20.6%; Sharpe ratio: 0.41
- Worst decline ever: −54.3%, from May 31, 2001 to October 17, 2002; back at its high by January 22, 2004

| Period | PEG total return |
| --- | --- |
| 1 month | +9.3% |
| 3 months | −2.0% |
| 6 months | −5.9% |
| year to date | −5.8% |
| 1 year | −5.4% |
| 3 years | +29.4% |
| 5 years | +37.6% |
| 10 years | +157% |

## PEG against the whole market

Where PEG ranks among every stock and fund, and what across the market has done better.

### How does PEG rank among all stocks?

This section ranks PEG on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- PEG is among the steadier stocks: its price swings rank in the top 4% of the 2,886 stocks worth at least $300 million, where the top is the calmest.

| Measure | PEG | Rank |
| --- | --- | --- |
| 1-year return | −5.4% | 2,284 of 3,272 (top 70%) |
| 3-year return | +29.4% | 1,844 of 2,999 (top 62%) |
| 5-year return | +37.6% | 1,256 of 2,886 (top 44%) |
| 10-year return | +157% | 1,086 of 2,186 (top 50%) |
| Volatility, 5 years | 20.6% | 105 of 2,886 (top 4%) |
| Sharpe ratio, 5 years | 0.41 | 1,195 of 2,886 (top 42%) |
| Worst decline, past 10 years | −40.8% | 169 of 2,183 (top 8%) |

### What has beaten PEG on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 27 stocks and 369 ETFs worth at least $500 million sit in the green region: each earned more than PEG over the past 5 years with smaller price swings. That is 11% of the 3,627 screened.
- Among those with at least half PEG's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 46% less than PEG's 20.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.41 for PEG. DXJ earned the most, 26.2% a year, while still swinging less than PEG (19.1% against 20.6%).
- Among PEG's popular alternatives, ED, SO and EVRG are in the region. ED earned 13.0% a year against 6.6% a year for PEG, at 18.9% volatility, 8% less than PEG's 20.6%.

### Is there a better investment than PEG?

The table below lists investments that beat PEG over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among PEG's popular alternatives, ED, WEC and AEE earned more than PEG with less volatility over the past 5 years. ED returned 13.0% a year at 18.9% volatility, against 6.6% a year at 20.6%.
- Looking beyond its popular alternatives, ATO (gas utilities) and FTS (electric utilities) earned more than PEG with less volatility over the past 5 years. ATO returned 16.1% a year at 18.4% volatility, against 6.6% a year at 20.6%.
- Across the whole market, 396 of the 3,627 stocks and funds worth at least $500 million earned more than PEG with less volatility over the past 5 years, among them VTI, VOO and BRK-A.

The 15 strongest of 396 investments that beat PEG over the past 5 years, out of 3,627 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with PEG | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| PEG: Public Service Enterprise Group Incorporated (this page) |  | +6.6% | 20.6% | 0.41 | −40.8% | +157% |  |  |
| [VTI](https://betterthanspy.com/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +10.7% | 17.5% | 0.67 | −35.0% | +304% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VOO](https://betterthanspy.com/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +11.8% | 16.9% | 0.75 | −34.0% | +323% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [BRK-A](https://betterthanspy.com/research/brk-a): Berkshire Hathaway Inc. | Insurance | +13.9% | 17.2% | 0.85 | −30.4% | +288% | 0.43 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JNJ](https://betterthanspy.com/research/jnj): Johnson & Johnson | Pharmaceuticals | +13.4% | 18.0% | 0.80 | −27.4% | +209% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Dividend Equity | +17.0% | 11.1% | 1.48 | −32.4% | +204% | 0.47 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VEA](https://betterthanspy.com/research/vea): Vanguard FTSE Developed Markets ETF | Developed International Equity | +9.1% | 16.9% | 0.60 | −35.8% | +158% | 0.41 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VIG](https://betterthanspy.com/research/vig): Vanguard Dividend Appreciation ETF | Dividend Growth | +10.5% | 14.1% | 0.78 | −31.7% | +267% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [SCHD](https://betterthanspy.com/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +10.5% | 14.4% | 0.77 | −33.4% | +264% | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VYM](https://betterthanspy.com/research/vym): Vanguard High Dividend Yield ETF | High Dividend Yield | +11.6% | 13.8% | 0.87 | −35.2% | +216% | 0.53 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FXU: First Trust Utilities AlphaDEX Fund | Utilities Equity | +12.1% | 16.7% | 0.78 | −34.8% | +154% | 0.79 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VT](https://betterthanspy.com/research/vt): Vanguard Total World Stock ETF | Global Equity | +9.7% | 16.2% | 0.66 | −34.2% | +224% | 0.43 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [RSG](https://betterthanspy.com/research/rsg): Republic Services, Inc. | Waste Management | +14.3% | 18.6% | 0.81 | −34.0% | +464% | 0.41 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [WM](https://betterthanspy.com/research/wm): Waste Management, Inc. | Waste Management | +9.8% | 19.3% | 0.58 | −30.1% | +346% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| PJUL: Innovator U.S. Equity Power Buffer ETF | US Equity Buffer | +10.1% | 8.6% | 1.16 | −18.2% | — | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | US Equity Buffer | +10.8% | 10.6% | 1.02 | −13.6% | — | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## PEG against its popular alternatives

The investments people most often weigh against PEG, compared period by period and year by year.

### How do PEG's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 12 of the 24 popular alternatives, led by PNW, ED and AEP, were both more rewarding and calmer than PEG over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, PEG returned 6.6% a year, less than the S&P 500's 11.7%, with higher volatility (20.6% against 17.2%).

### Has PEG consistently beaten its popular alternatives?

This section compares PEG with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- 15 of the 25 popular alternatives, led by AEE, SO and WEC, outperformed PEG in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- AEE, SO and WEC outperformed PEG in every long-term period and in all but one short-term period, the most consistent record in the group.
- PNW, ED and SO earned more for the risk they took than PEG (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of PEG | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| PEG: Public Service Enterprise Group Incorporated (this page) | −5.4% | +29.4% | +37.6% | +157% |  |  | 0.41 |
| AEE: Ameren Corporation | +12.9% | +56.3% | +53.1% | +206% | 5/5 short-term, 3/3 long-term | all-weather | 0.54 |
| [SO](https://betterthanspy.com/research/so): The Southern Company | +4.9% | +49.6% | +81.7% | +184% | 5/5 short-term, 3/3 long-term | all-weather | 0.73 |
| [WEC](https://betterthanspy.com/research/wec): WEC Energy Group, Inc. | +9.3% | +55.2% | +52.5% | +179% | 5/5 short-term, 3/3 long-term | all-weather | 0.54 |
| LNT: Alliant Energy Corporation | +13.3% | +60.4% | +50.6% | +170% | 5/5 short-term, 3/3 long-term | all-weather | 0.51 |
| [XEL](https://betterthanspy.com/research/xel): Xcel Energy Inc. | +0.7% | +43.7% | +43.9% | +164% | 5/5 short-term, 3/3 long-term | all-weather | 0.46 |
| [ETR](https://betterthanspy.com/research/etr): Entergy Corporation | +16.3% | +145% | +152% | +348% | 4/5 short-term, 3/3 long-term | all-weather | 0.94 |
| [AEP](https://betterthanspy.com/research/aep): American Electric Power Company, Inc. | +12.1% | +83.3% | +82.9% | +193% | 4/5 short-term, 3/3 long-term | all-weather | 0.70 |
| [EXC](https://betterthanspy.com/research/exc): Exelon Corporation | +4.2% | +27.8% | +44.7% | +181% | 5/5 short-term, 2/3 long-term | consistent | 0.46 |
| [DUK](https://betterthanspy.com/research/duk): Duke Energy Corporation | +7.4% | +59.9% | +51.9% | +147% | 5/5 short-term, 2/3 long-term | consistent | 0.56 |
| [ED](https://betterthanspy.com/research/ed): Consolidated Edison, Inc. | +26.7% | +45.5% | +84.2% | +125% | 5/5 short-term, 2/3 long-term | consistent | 0.74 |
| FE: FirstEnergy Corp. | +7.6% | +47.6% | +48.6% | +116% | 5/5 short-term, 2/3 long-term | consistent | 0.51 |
| PNW: Pinnacle West Capital Corporation | +23.0% | +59.4% | +106% | +111% | 5/5 short-term, 2/3 long-term | consistent | 0.83 |
| PPL: PPL Corporation | +2.5% | +59.1% | +47.0% | +64.8% | 5/5 short-term, 2/3 long-term | consistent | 0.50 |
| [NEE](https://betterthanspy.com/research/nee): NextEra Energy, Inc. | +7.0% | +55.1% | +13.9% | +255% | 4/5 short-term, 2/3 long-term | consistent | 0.23 |
| EVRG: Evergy, Inc. | +15.9% | +91.7% | +65.3% | +118% | 4/5 short-term, 2/3 long-term | consistent | 0.63 |
| [PWR](https://betterthanspy.com/research/pwr): Quanta Services, Inc. | +37.9% | +256% | +419% | +2,124% | 2/5 short-term, 3/3 long-term |  | 1.07 |
| [VST](https://betterthanspy.com/research/vst): Vistra Corp. | −29.9% | +298% | +638% | +1,256% | 0/5 short-term, 3/3 long-term |  | 1.07 |
| CCJ: Cameco Corporation | −27.1% | +72.3% | +196% | +842% | 0/5 short-term, 3/3 long-term |  | 0.69 |
| DTE: DTE Energy Company | +5.0% | +52.4% | +41.8% | +139% | 2/5 short-term, 2/3 long-term |  | 0.46 |
| CMS: CMS Energy Corporation | +0.7% | +38.9% | +36.7% | +131% | 5/5 short-term, 1/3 long-term |  | 0.42 |
| [D](https://betterthanspy.com/research/d): Dominion Energy, Inc. | +20.7% | +89.9% | +12.3% | +40.9% | 5/5 short-term, 1/3 long-term |  | 0.22 |
| ES: Eversource Energy | −2.1% | +47.2% | +0.9% | +85.1% | 3/5 short-term, 1/3 long-term |  | 0.13 |
| [CEG](https://betterthanspy.com/research/ceg): Constellation Energy Corporation | −31.5% | +124% | — | — | 0/5 short-term, 1/3 long-term |  | — |
| EIX: Edison International | +16.0% | +9.5% | +19.6% | +30.3% | 3/5 short-term, 0/3 long-term |  | 0.27 |
| PCG: PG&E Corporation | −15.4% | −19.1% | +19.5% | −76.8% | 0/5 short-term, 0/3 long-term |  | 0.27 |

### How did PEG do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where PEG ranked among its popular alternatives each year.

- PEG finished ahead of the S&P 500 in 14 of its 29 full calendar years.
- Among its popular alternatives, VST came out ahead of PEG most often, in six of the nine years both traded.
- Ranked against its popular alternatives each year, PEG finished in the top quarter in eight of 29 years and in the bottom quarter in seven. In 2025, it ranked 24 of 26.

| Year | PEG | SPY |
| --- | --- | --- |
| 2025 | −1.9% | +17.7% |
| 2024 | +42.6% | +24.9% |
| 2023 | +3.6% | +26.2% |
| 2022 | −5.1% | −18.2% |
| 2021 | +18.3% | +28.7% |
| 2020 | +2.4% | +18.3% |
| 2019 | +17.1% | +31.2% |
| 2018 | +4.7% | −4.6% |
| 2017 | +21.8% | +21.7% |
| 2016 | +17.8% | +12.0% |

## Risk and diversification

How PEG has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were PEG's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of PEG's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: PEG fell 35.4% from June 1999 to March 2000, while the S&P 500 rose 4.8%.
- The slowest recovery came after PEG fell 51.2% from January 2008 to March 2009; it did not regain that peak until April 2014, five years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −54.3% | May 31, 2001 | October 17, 2002 | January 22, 2004 | −28.4% | dot-com bust |
| −51.2% | January 9, 2008 | March 12, 2009 | April 16, 2014 | −44.9% | 2008 financial crisis |
| −40.8% | October 31, 2019 | March 23, 2020 | March 29, 2021 | −25.7% | Covid crash |
| −35.4% | June 16, 1999 | March 13, 2000 | September 8, 2000 | +4.8% | dot-com bust |
| −27.7% | January 26, 1987 | October 19, 1987 | May 12, 1989 | — |  |

### How did PEG do in stock market crashes?

This section measures how far PEG, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, ED held up best, falling less than PEG in all ten crashes they both traded through.
- PEG fell less than the S&P 500 in four of the ten crashes it has traded through. The clearest case was the late-2018 sell-off, when PEG fell 10.8% and the S&P 500 fell 19.3%.

| Crash | Dates | PEG fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −48.3% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −51.0% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −1.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −13.4% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −14.8% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.6% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −10.8% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −38.0% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −27.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −3.6% | −3.4% |

### How closely does PEG move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, PEG captured 52% of the S&P 500's gains in rising months and 41% of its losses in falling months, with a beta of 0.52. That is a defensive profile: it gave up some of the market's upside in exchange for smaller losses.
- 19 of the 24 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than PEG's 1.26, led by ETR, ED and SO.
- ETR took just 14% of the S&P 500's losses, against 41% for PEG, while still keeping 58% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| PEG: Public Service Enterprise Group Incorporated (this page) | 52.0% | 41.0% | 0.52 |
| AEE: Ameren Corporation | 51.0% | 27.0% | 0.37 |
| [SO](https://betterthanspy.com/research/so): The Southern Company | 41.0% | 12.0% | 0.38 |
| [WEC](https://betterthanspy.com/research/wec): WEC Energy Group, Inc. | 41.0% | 14.0% | 0.33 |
| LNT: Alliant Energy Corporation | 50.0% | 36.0% | 0.45 |
| [XEL](https://betterthanspy.com/research/xel): Xcel Energy Inc. | 41.0% | 16.0% | 0.34 |
| [ETR](https://betterthanspy.com/research/etr): Entergy Corporation | 58.0% | 14.0% | 0.52 |
| [AEP](https://betterthanspy.com/research/aep): American Electric Power Company, Inc. | 44.0% | 17.0% | 0.39 |
| [EXC](https://betterthanspy.com/research/exc): Exelon Corporation | 40.0% | 14.0% | 0.36 |
| [DUK](https://betterthanspy.com/research/duk): Duke Energy Corporation | 35.0% | 11.0% | 0.32 |
| [ED](https://betterthanspy.com/research/ed): Consolidated Edison, Inc. | 31.0% | 9.0% | 0.21 |
| FE: FirstEnergy Corp. | 40.0% | 30.0% | 0.35 |
| PNW: Pinnacle West Capital Corporation | 34.0% | 19.0% | 0.37 |
| PPL: PPL Corporation | 52.0% | 71.0% | 0.64 |
| [NEE](https://betterthanspy.com/research/nee): NextEra Energy, Inc. | 62.0% | 41.0% | 0.45 |
| EVRG: Evergy, Inc. | 42.0% | 33.0% | 0.46 |
| [PWR](https://betterthanspy.com/research/pwr): Quanta Services, Inc. | 141% | 65.0% | 1.23 |
| [VST](https://betterthanspy.com/research/vst): Vistra Corp. | 125% | 74.0% | 1.13 |
| CCJ: Cameco Corporation | 124% | 83.0% | 1.04 |
| DTE: DTE Energy Company | 47.0% | 37.0% | 0.50 |
| CMS: CMS Energy Corporation | 35.0% | 16.0% | 0.27 |
| [D](https://betterthanspy.com/research/d): Dominion Energy, Inc. | 43.0% | 65.0% | 0.51 |
| ES: Eversource Energy | 49.0% | 58.0% | 0.52 |
| EIX: Edison International | 30.0% | 47.0% | 0.61 |
| PCG: PG&E Corporation | −17.0% | 68.0% | 0.78 |

### What diversifies PEG?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in PEG into FTLS would have cut the portfolio's volatility by 16% over the past 5 years and raised its annual return (+6.6% for PEG alone, +7.5% for the mix).
- Among large ETFs, LVHI, DXJ and DBEF have moved largely independently of PEG over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.
- CLS made money in five of the nine calendar years in which PEG lost money.

| Investment | Correlation with PEG | 5Y return | Volatility | Sharpe | Rose in PEG's 9 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.47 | +119% | 11.1% | 1.48 | 2 of 9 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.20 | +220% | 19.1% | 1.32 | 4 of 9 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.38 | +82.4% | 13.8% | 0.94 | 3 of 9 |
| FTLS: First Trust Long/Short Equity ETF | 0.35 | +58.7% | 10.5% | 0.94 | 2 of 9 |
| AMLP: Alerian MLP ETF | 0.31 | +120% | 18.9% | 0.93 | 3 of 9 |
| IWX: iShares Russell Top 200 Value ETF | 0.49 | +80.9% | 13.8% | 0.93 | 3 of 9 |
| [XLE](https://betterthanspy.com/research/xle): State Street Energy Select Sector SPDR ETF | 0.28 | +177% | 25.6% | 0.93 | 5 of 9 |
| [GLD](https://betterthanspy.com/research/gld): SPDR Gold Shares | 0.27 | +116% | 19.1% | 0.91 | 4 of 9 |

## Common questions

### What was PEG's worst drawdown?

PEG's deepest decline since it began trading in 1986 was 54.3%, from May 2001 to October 2002. It took 15 months from the low to climb back to its old high.

### What were PEG's best and worst years?

Over 29 full calendar years, PEG's best year was 2007, when it returned 52.1%. Its worst was 2008, with a return of -38.6%.

### Is there a better investment than PEG?

Among PEG's popular alternatives, ED, WEC and AEE earned more than PEG with less volatility over the past 5 years. ED returned 13.0% a year at 18.9% volatility, against 6.6% a year at 20.6%. Looking beyond its popular alternatives, ATO (gas utilities) and FTS (electric utilities) earned more than PEG with less volatility over the past 5 years. ATO returned 16.1% a year at 18.4% volatility, against 6.6% a year at 20.6%.

### Is PEG more volatile than the S&P 500?

Yes. PEG's volatility over the past 5 years was 20.6%, 1.2 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, PEG's return lands within 20.6% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is PEG's Sharpe ratio?

PEG's Sharpe ratio over the past 5 years was 0.41, against 0.73 for the S&P 500, so PEG earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is PEG with the S&P 500?

Over the past 5 years, PEG's monthly returns had a correlation of 0.40 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against PEG instead: the lower it is, the more that option would diversify a PEG holding.

### What are the best alternatives to PEG?

Of the 25 popular alternatives we compared, 15 outperformed PEG in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: AEE, SO and WEC.

### Did PEG outperform the S&P 500?

PEG finished ahead of the S&P 500 (SPY) in 14 of 29 full calendar years. In 2025, it returned -1.9%, against +17.7% for the index.

### How did PEG do in stock market crashes?

PEG fell less than the S&P 500 (SPY) in four of the ten major crashes it has traded through, and further in four. The clearest case was the late-2018 sell-off, when PEG fell 10.8% and the S&P 500 fell 19.3%.

### What diversifies PEG?

These had a low correlation with PEG over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.47), DXJ (correlation 0.20) and DBEF (correlation 0.38); among large stocks, CAH (correlation 0.31), MPC (correlation 0.11) and MCK (correlation 0.29). A correlation near zero means the two have moved largely independently.

## More research

- [Is SO Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/so)
- [Is WEC Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/wec)
- [Is XEL Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/xel)
- [Is ETR Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/etr)
- [Is AEP Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/aep)
- [Is EXC Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/exc)
- [Is DUK Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/duk)
- [Is ED Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/ed)
- [Is NEE Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/nee)
- [Is PWR Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/pwr)
- [Is VST Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/vst)
- [Is D Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/d)

## Explore further

- Full page with charts: https://betterthanspy.com/research/peg
- All research pages: https://betterthanspy.com/llms.txt
- Compare the entire market against PEG live: https://betterthanspy.com/?b=PEG