AAVM vs. PSC

Last updated Jun 24, 2026

AAVM (Alpha Architect Global Factor Equity ETF) and PSC (Principal U.S. Small Cap Multi-Factor ETF) are both exchange-traded funds - AAVM is a Multi-factor fund actively managed by Alpha Architect, while PSC is a Small Cap Blend Equities fund tracking the Nasdaq US Small Cap Select Leaders TR Index. AAVM is actively managed, while PSC is passively managed. Over the past 5 years, AAVM returned 6.54%/yr vs 8.77%/yr for PSC. A 0.64 correlation means they provide meaningful diversification when combined. AAVM charges 0.45%/yr vs 0.38%/yr for PSC.

Performance

AAVM vs. PSC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alpha Architect Global Factor Equity ETF (AAVM) and Principal U.S. Small Cap Multi-Factor ETF (PSC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAVM achieves a 13.98% return, which is significantly lower than PSC's 17.73% return.

AAVM

• 1D: -1.90%
• 1M: -1.17%
• YTD: 13.98%
• 6M: 12.98%
• 1Y: 29.85%
• 3Y*: 18.21%
• 5Y*: 6.54%
• 10Y*: —

PSC

• 1D: -0.58%
• 1M: 5.16%
• YTD: 17.73%
• 6M: 15.20%
• 1Y: 31.66%
• 3Y*: 19.46%
• 5Y*: 8.77%
• 10Y*: —

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

AAVM vs. PSC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAVM Alpha Architect Global Factor Equity ETF	13.98%	18.54%	12.07%	-0.74%	-7.00%	3.52%	4.69%	4.59%	-15.64%	14.98%
PSC Principal U.S. Small Cap Multi-Factor ETF	17.73%	13.41%	12.38%	18.51%	-15.91%	32.56%	13.30%	18.99%	-11.35%	9.91%

Correlation

The correlation between AAVM and PSC is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jun 13, 2017	0.64

The correlation between AAVM and PSC shifts across timeframes, from 0.64 (all time) to 0.82 (3 years), reflecting how their relationship changes across market environments.

AAVM vs. PSC - Sectors Allocation Comparison

Sectors	AAVM	PSC
Industrials	25.5%	16.9%
Technology	13.6%	20.3%
Consumer Cyclical	13.5%	8.2%
Energy	12.6%	5.6%
Basic Materials	12.2%	4.2%
Healthcare	5.8%	15.8%
Communication Services	5.8%	2.3%
Consumer Defensive	4.7%	2.2%
Utilities	3.8%	2.7%
Financial Services	1.3%	17.2%
Real Estate	1.3%	4.5%

Return for Risk

AAVM vs. PSC — Risk / Return Rank

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

AAVM

AAVM Risk / Return Rank: 61
AAVM Sharpe Ratio Rank: 60
AAVM Sortino Ratio Rank: 60
AAVM Omega Ratio Rank: 60
AAVM Calmar Ratio Rank: 60
AAVM Martin Ratio Rank: 66

PSC

PSC Risk / Return Rank: 57
PSC Sharpe Ratio Rank: 52
PSC Sortino Ratio Rank: 53
PSC Omega Ratio Rank: 47
PSC Calmar Ratio Rank: 68
PSC Martin Ratio Rank: 65

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.

AAVM vs. PSC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alpha Architect Global Factor Equity ETF (AAVM) and Principal U.S. Small Cap Multi-Factor ETF (PSC). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAVM	PSC	Difference
Sharpe ratio: Return per unit of total volatility	1.87	1.68	+0.19
Sortino ratio: Return per unit of downside risk	2.64	2.40	+0.23
Omega ratio: Gain probability vs. loss probability	1.34	1.29	+0.06
Calmar ratio: Return relative to maximum drawdown	2.76	3.20	-0.43
Martin ratio: Return relative to average drawdown	11.28	11.15	+0.12

AAVM vs. PSC - Sharpe Ratio Comparison

The current AAVM Sharpe Ratio is 1.87, which is comparable to the PSC Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of AAVM and PSC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAVM vs. PSC - Drawdown Comparison

The maximum AAVM drawdown since its inception was -34.71%, smaller than the maximum PSC drawdown of -46.69%. Use the drawdown chart below to compare losses from any high point for AAVM and PSC.

Drawdown Indicators

	AAVM	PSC	Difference
Max Drawdown Largest peak-to-trough decline	-34.71%	-46.69%	+11.98%
Max Drawdown (1Y) Largest decline over 1 year	-10.85%	-9.95%	-0.90%
Max Drawdown (3Y) Largest decline over 3 years	-20.23%	-23.49%	+3.26%
Max Drawdown (5Y) Largest decline over 5 years	-23.73%	-25.86%	+2.13%
Current Drawdown Current decline from peak	-3.36%	-0.58%	-2.78%
Average Drawdown Average peak-to-trough decline	-13.25%	-8.23%	-5.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	2.85%	-0.20%

Volatility

AAVM vs. PSC - Volatility Comparison

Alpha Architect Global Factor Equity ETF (AAVM) has a higher volatility of 5.92% compared to Principal U.S. Small Cap Multi-Factor ETF (PSC) at 5.38%. This indicates that AAVM's price experiences larger fluctuations and is considered to be riskier than PSC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAVM	PSC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.92%	5.38%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	13.79%	13.32%	+0.47%
Volatility (1Y) Calculated over the trailing 1-year period	16.05%	18.96%	-2.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.80%	21.02%	-5.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.96%	23.28%	-8.32%

AAVM vs. PSC - Expense Ratio Comparison

AAVM has a 0.45% expense ratio, which is higher than PSC's 0.38% expense ratio.

Dividends

AAVM vs. PSC - Dividend Comparison

AAVM's dividend yield for the trailing twelve months is around 1.80%, more than PSC's 0.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
AAVM Alpha Architect Global Factor Equity ETF	1.80%	2.05%	2.54%	4.13%	2.24%	0.82%	0.00%	1.76%	0.93%	0.81%	0.00%
PSC Principal U.S. Small Cap Multi-Factor ETF	0.57%	0.67%	0.75%	0.73%	1.92%	1.45%	1.25%	1.47%	1.30%	0.95%	0.35%

Frequently Asked Questions

Can I hold both AAVM and PSC in my portfolio?

AAVM and PSC have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAVM or PSC?

AAVM has higher volatility (5.92%) compared to PSC (5.38%). In terms of maximum drawdown, AAVM dropped -34.71% vs PSC's -46.69%.

Which ETF is better, AAVM or PSC?

On 5-year performance, PSC leads with 8.77% vs 6.54% for AAVM. On fees, PSC is cheaper at 0.38% per year. On volatility, PSC has been the lower-risk option at 5.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAVM or PSC?

Over the 5-year period, PSC has performed better with a 8.77% return vs 6.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAVM or PSC?

PSC is cheaper with a 0.38% expense ratio, compared with 0.45% for AAVM.

Which ETF pays a higher dividend yield, AAVM or PSC?

AAVM has the higher dividend yield at 1.80%, compared with 0.57% for PSC.

What is the main difference between AAVM and PSC?

AAVM is categorized as Multi-factor, while PSC is Small Cap Blend Equities. They also come from different issuers: Alpha Architect and Principal. Their fees differ too: 0.45% for AAVM and 0.38% for PSC.

Which has better risk-adjusted returns?

AAVM currently has the higher Sharpe Ratio (1.87 vs 1.68), 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.