FXN vs. PSCE

Last updated Aug 4, 2026

FXN (First Trust Energy AlphaDEX Fund) and PSCE (Invesco S&P SmallCap Energy ETF) are both Energy Equities funds - FXN tracks the StrataQuant Energy Index while PSCE tracks the S&P SmallCap 600 Energy Index. Both are passively managed. Over the past 10 years, FXN returned 6.54%/yr vs -2.18%/yr for PSCE. Their correlation of 0.91 means they have usually moved in the same direction. FXN charges 0.64%/yr vs 0.29%/yr for PSCE.

Performance

FXN vs. PSCE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Energy AlphaDEX Fund (FXN) and Invesco S&P SmallCap Energy ETF (PSCE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FXN having a 34.12% return and PSCE slightly higher at 34.72%. Over the past 10 years, FXN has outperformed PSCE with an annualized return of 6.54%, while PSCE has yielded a comparatively lower -2.18% annualized return.

FXN

• 1D: -0.77%
• 1M: 8.88%
• 6M: 23.33%
• YTD: 34.12%
• 1Y: 45.83%
• 3Y*: 10.71%
• 5Y*: 19.56%
• 10Y*: 6.54%
• ALL TIME*: 2.12%

PSCE

• 1D: -0.89%
• 1M: 6.71%
• 6M: 15.77%
• YTD: 34.72%
• 1Y: 54.23%
• 3Y*: 3.40%
• 5Y*: 14.89%
• 10Y*: -2.18%
• ALL TIME*: -3.97%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FXN First Trust Energy AlphaDEX Fund	$7.82M	$9.25M	$37.23M
PSCE Invesco S&P SmallCap Energy ETF	$1.42M	$1.33M	$1.68M

FXN vs. PSCE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXN First Trust Energy AlphaDEX Fund	34.12%	3.39%	0.27%	0.97%	46.92%	51.79%	-19.91%	-6.76%	-24.79%	-5.02%
PSCE Invesco S&P SmallCap Energy ETF	34.72%	-9.00%	-5.47%	5.07%	48.45%	59.85%	-40.31%	-14.93%	-42.98%	-26.70%

Correlation

The correlation between FXN and PSCE is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (3Y) Balances recent behavior with more history.	0.89
Correlation (5Y) Shows whether the relationship held over a longer period.	0.91
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.91

The correlation between FXN and PSCE has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

FXN vs. PSCE - Sectors Allocation Comparison

Sectors	FXN	PSCE
Energy	90.0%	90.0%
Technology	5.0%	-
Financial Services	2.5%	0.2%
Basic Materials	-	1.2%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	3.6%
Real Estate	-	-
Utilities	-	-

Return for Risk

FXN vs. PSCE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FXN

FXN Risk / Return Rank: 76
FXN Sharpe Ratio Rank: 81
FXN Sortino Ratio Rank: 75
FXN Omega Ratio Rank: 72
FXN Calmar Ratio Rank: 85
FXN Martin Ratio Rank: 67

PSCE

PSCE Risk / Return Rank: 79
PSCE Sharpe Ratio Rank: 83
PSCE Sortino Ratio Rank: 78
PSCE Omega Ratio Rank: 74
PSCE Calmar Ratio Rank: 85
PSCE Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FXN vs. PSCE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Energy AlphaDEX Fund (FXN) and Invesco S&P SmallCap Energy ETF (PSCE). 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.

	FXN	PSCE	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.02	-0.03
Sortino ratio: Return per unit of downside risk	2.56	2.63	-0.07
Omega ratio: Gain probability vs. loss probability	1.32	1.32	0.00
Calmar ratio: Return relative to maximum drawdown	3.43	3.37	+0.06
Martin ratio: Return relative to average drawdown	8.58	10.05	-1.47

FXN vs. PSCE - Sharpe Ratio Comparison

The current FXN Sharpe Ratio is 1.99, which is comparable to the PSCE Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of FXN and PSCE, 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

FXN vs. PSCE - Drawdown Comparison

The maximum FXN drawdown since its inception was -87.39%, smaller than the maximum PSCE drawdown of -96.21%. Use the drawdown chart below to compare losses from any high point for FXN and PSCE.

Drawdown Indicators

	FXN	PSCE	Difference
Max Drawdown Largest peak-to-trough decline	-87.39%	-96.21%	+8.82%
Max Drawdown (1Y) Largest decline over 1 year	-13.41%	-16.17%	+2.76%
Max Drawdown (3Y) Largest decline over 3 years	-31.69%	-44.57%	+12.88%
Max Drawdown (5Y) Largest decline over 5 years	-31.69%	-45.42%	+13.73%
Max Drawdown (10Y) Largest decline over 10 years	-80.63%	-90.70%	+10.07%
Current Drawdown Current decline from peak	-5.06%	-76.06%	+71.00%
Average Drawdown Average peak-to-trough decline	-37.73%	-58.99%	+21.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.36%	5.41%	-0.05%

Volatility

FXN vs. PSCE - Volatility Comparison

The current volatility for First Trust Energy AlphaDEX Fund (FXN) is 6.21%, while Invesco S&P SmallCap Energy ETF (PSCE) has a volatility of 8.77%. This indicates that FXN experiences smaller price fluctuations and is considered to be less risky than PSCE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXN	PSCE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.21%	8.77%	-2.56%
Volatility (6M) Calculated over the trailing 6-month period	17.24%	20.06%	-2.82%
Volatility (1Y) Calculated over the trailing 1-year period	23.15%	26.99%	-3.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.71%	36.95%	-8.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.80%	43.02%	-8.22%

FXN vs. PSCE - Expense Ratio Comparison

FXN has a 0.64% expense ratio, which is higher than PSCE's 0.29% expense ratio.

Dividends

FXN vs. PSCE - Dividend Comparison

FXN's dividend yield for the trailing twelve months is around 1.63%, less than PSCE's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXN First Trust Energy AlphaDEX Fund	1.63%	2.53%	2.50%	3.09%	2.28%	0.87%	4.71%	1.47%	1.43%	1.17%	1.05%	2.36%
PSCE Invesco S&P SmallCap Energy ETF	2.24%	2.39%	1.70%	2.57%	1.70%	0.46%	0.87%	0.14%	0.22%	0.04%	0.22%	0.82%

Frequently Asked Questions

Can I hold both FXN and PSCE in my portfolio?

FXN and PSCE have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXN or PSCE?

PSCE has higher volatility (8.77%) compared to FXN (6.21%). In terms of maximum drawdown, FXN dropped -87.39% vs PSCE's -96.21%.

Which ETF is better, FXN or PSCE?

On 10-year performance, FXN leads with 6.54% vs -2.18% for PSCE. On fees, PSCE is cheaper at 0.29% per year. On volatility, FXN has been the lower-risk option at 6.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXN or PSCE?

Over the 10-year period, FXN has performed better with a 6.54% return vs -2.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXN or PSCE?

PSCE is cheaper with a 0.29% expense ratio, compared with 0.64% for FXN.

Which ETF pays a higher dividend yield, FXN or PSCE?

PSCE has the higher dividend yield at 2.24%, compared with 1.63% for FXN.

What is the main difference between FXN and PSCE?

FXN tracks StrataQuant Energy Index, while PSCE tracks S&P SmallCap 600 Energy Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.64% for FXN and 0.29% for PSCE.

Which has better risk-adjusted returns?

PSCE currently has the higher Sharpe Ratio (2.02 vs 1.99), 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.