DEF vs. PFM

Last updated Jun 4, 2026

DEF (Invesco Defensive Equity ETF) and PFM (Invesco Dividend Achievers™ ETF) are both Large Cap Growth Equities funds from Invesco - DEF tracks the Invesco Defensive Equity Index while PFM tracks the NASDAQ US Broad Dividend Achievers Index. Both are passively managed. Over the past 10 years, DEF returned 10.28%/yr vs 11.82%/yr for PFM. Their correlation of 0.84 suggests significant overlap in exposure. Both charge a 0.53% expense ratio.

Performance

DEF vs. PFM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Defensive Equity ETF (DEF) and Invesco Dividend Achievers™ ETF (PFM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DEF achieves a -2.29% return, which is significantly lower than PFM's 8.18% return. Over the past 10 years, DEF has underperformed PFM with an annualized return of 10.28%, while PFM has yielded a comparatively higher 11.82% annualized return.

DEF

• 1D: 0.04%
• 1M: 0.44%
• YTD: -2.29%
• 6M: -2.55%
• 1Y: 4.21%
• 3Y*: 10.86%
• 5Y*: 7.41%
• 10Y*: 10.28%

PFM

• 1D: -0.23%
• 1M: 3.40%
• YTD: 8.18%
• 6M: 7.73%
• 1Y: 19.65%
• 3Y*: 16.31%
• 5Y*: 10.63%
• 10Y*: 11.82%

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

DEF vs. PFM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEF Invesco Defensive Equity ETF	-2.29%	11.71%	13.18%	10.58%	-7.67%	24.93%	7.61%	27.98%	-3.96%	21.52%
PFM Invesco Dividend Achievers™ ETF	8.18%	14.00%	16.87%	11.40%	-6.22%	23.08%	9.53%	26.88%	-4.58%	17.65%

Correlation

The correlation between DEF and PFM is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Dec 18, 2006	0.84

The correlation between DEF and PFM shifts across timeframes, from 0.81 (1 year) to 0.91 (5 years), reflecting how their relationship changes across market environments.

DEF vs. PFM - Sectors Allocation Comparison

Sectors	DEF	PFM
Healthcare	16.8%	14.9%
Financial Services	16.1%	18.5%
Industrials	15.6%	11.1%
Consumer Defensive	12.9%	12.0%
Technology	12.1%	24.7%
Consumer Cyclical	10.1%	4.0%
Utilities	4.8%	4.2%
Communication Services	4.7%	1.1%
Real Estate	3.8%	2.0%
Basic Materials	2.1%	3.0%
Energy	1.0%	4.7%

Return for Risk

DEF vs. PFM — Risk / Return Rank

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

DEF

DEF Risk / Return Rank: 14
DEF Sharpe Ratio Rank: 14
DEF Sortino Ratio Rank: 13
DEF Omega Ratio Rank: 13
DEF Calmar Ratio Rank: 14
DEF Martin Ratio Rank: 15

PFM

PFM Risk / Return Rank: 62
PFM Sharpe Ratio Rank: 61
PFM Sortino Ratio Rank: 66
PFM Omega Ratio Rank: 61
PFM Calmar Ratio Rank: 56
PFM Martin Ratio Rank: 63

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.

DEF vs. PFM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Defensive Equity ETF (DEF) and Invesco Dividend Achievers™ ETF (PFM). 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.

	DEF	PFM	Difference
Sharpe ratio: Return per unit of total volatility	0.36	2.09	-1.73
Sortino ratio: Return per unit of downside risk	0.61	3.07	-2.46
Omega ratio: Gain probability vs. loss probability	1.07	1.38	-0.31
Calmar ratio: Return relative to maximum drawdown	0.43	2.78	-2.35
Martin ratio: Return relative to average drawdown	1.18	11.28	-10.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DEF vs. PFM - Sharpe Ratio Comparison

The current DEF Sharpe Ratio is 0.36, which is lower than the PFM Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of DEF and PFM, 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

	DEF	PFM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.36	2.09	-1.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.79	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.78	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.53	+0.01

Drawdowns

DEF vs. PFM - Drawdown Comparison

The maximum DEF drawdown since its inception was -47.91%, smaller than the maximum PFM drawdown of -53.21%. Use the drawdown chart below to compare losses from any high point for DEF and PFM.

Drawdown Indicators

	DEF	PFM	Difference
Max Drawdown Largest peak-to-trough decline	-47.91%	-53.21%	+5.30%
Max Drawdown (1Y) Largest decline over 1 year	-9.76%	-7.09%	-2.67%
Max Drawdown (3Y) Largest decline over 3 years	-15.00%	-14.50%	-0.50%
Max Drawdown (5Y) Largest decline over 5 years	-17.75%	-17.81%	+0.06%
Max Drawdown (10Y) Largest decline over 10 years	-36.53%	-32.22%	-4.31%
Current Drawdown Current decline from peak	-6.44%	-0.23%	-6.21%
Average Drawdown Average peak-to-trough decline	-6.24%	-6.94%	+0.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.59%	1.75%	+1.84%

Volatility

DEF vs. PFM - Volatility Comparison

Invesco Defensive Equity ETF (DEF) has a higher volatility of 3.12% compared to Invesco Dividend Achievers™ ETF (PFM) at 2.04%. This indicates that DEF's price experiences larger fluctuations and is considered to be riskier than PFM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DEF	PFM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.12%	2.04%	+1.08%
Volatility (6M) Calculated over the trailing 6-month period	8.80%	7.13%	+1.67%
Volatility (1Y) Calculated over the trailing 1-year period	11.73%	9.47%	+2.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.92%	13.54%	+0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.05%	15.21%	+0.84%

DEF vs. PFM - Expense Ratio Comparison

Both DEF and PFM have an expense ratio of 0.53%.

Dividends

DEF vs. PFM - Dividend Comparison

DEF's dividend yield for the trailing twelve months is around 0.96%, less than PFM's 1.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEF Invesco Defensive Equity ETF	0.96%	0.94%	0.79%	1.60%	1.48%	1.06%	1.34%	1.16%	1.39%	1.63%	2.18%	3.31%
PFM Invesco Dividend Achievers™ ETF	1.33%	1.41%	1.58%	1.86%	1.95%	1.69%	1.92%	1.94%	2.27%	1.70%	2.56%	2.36%

Frequently Asked Questions

Can I hold both DEF and PFM in my portfolio?

DEF and PFM have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEF or PFM?

DEF has higher volatility (3.12%) compared to PFM (2.04%). In terms of maximum drawdown, DEF dropped -47.91% vs PFM's -53.21%.

Which ETF is better, DEF or PFM?

On 10-year performance, PFM leads with 11.82% vs 10.28% for DEF. Both ETFs have the same 0.53% expense ratio. On volatility, PFM has been the lower-risk option at 2.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEF or PFM?

Over the 10-year period, PFM has performed better with a 11.82% return vs 10.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEF or PFM?

DEF and PFM have the same expense ratio: 0.53% per year.

Which ETF pays a higher dividend yield, DEF or PFM?

PFM has the higher dividend yield at 1.33%, compared with 0.96% for DEF.

What is the main difference between DEF and PFM?

DEF tracks Invesco Defensive Equity Index, while PFM tracks NASDAQ US Broad Dividend Achievers Index.

Which has better risk-adjusted returns?

PFM currently has the higher Sharpe Ratio (2.09 vs 0.36), 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.