FXZ vs. PSCM

Last updated Aug 2, 2026

FXZ (First Trust Materials AlphaDEX Fund) and PSCM (Invesco S&P SmallCap Materials ETF) are both Materials funds - FXZ tracks the StrataQuant Materials Index while PSCM tracks the S&P Small Cap 600 / Materials -SEC. Both are passively managed. Over the past 10 years, FXZ returned 10.25%/yr vs 10.88%/yr for PSCM. Their 0.76 correlation means they have sometimes moved together and sometimes differently. FXZ charges 0.67%/yr vs 0.29%/yr for PSCM.

Performance

FXZ vs. PSCM - Performance Comparison

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

Returns By Period

In the year-to-date period, FXZ achieves a 18.92% return, which is significantly higher than PSCM's 15.02% return. Over the past 10 years, FXZ has underperformed PSCM with an annualized return of 10.25%, while PSCM has yielded a comparatively higher 10.88% annualized return.

FXZ

• 1D: -1.69%
• 1M: -2.68%
• 6M: 7.26%
• YTD: 18.92%
• 1Y: 38.67%
• 3Y*: 5.94%
• 5Y*: 7.59%
• 10Y*: 10.25%
• ALL TIME*: 8.86%

PSCM

• 1D: 0.39%
• 1M: -4.92%
• 6M: 5.05%
• YTD: 15.02%
• 1Y: 36.37%
• 3Y*: 11.08%
• 5Y*: 9.38%
• 10Y*: 10.88%
• ALL TIME*: 9.52%

*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)
FXZ First Trust Materials AlphaDEX Fund	$3.44M	$3.68M	$4.56M
PSCM Invesco S&P SmallCap Materials ETF	$171.19K	$253.44K	$274.93K

FXZ vs. PSCM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXZ First Trust Materials AlphaDEX Fund	18.92%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%
PSCM Invesco S&P SmallCap Materials ETF	15.02%	15.59%	0.67%	19.86%	-6.45%	18.02%	22.18%	21.75%	-23.28%	10.37%

Correlation

The correlation between FXZ and PSCM is 0.84, 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.	0.84
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (5Y) Shows whether the relationship held over a longer period.	0.85
Correlation (10Y) Provides a long-term view across more market conditions.	0.81
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.76

The correlation between FXZ and PSCM has been stable across timeframes, ranging from 0.76 to 0.85 - a consistent structural relationship.

FXZ vs. PSCM - Sectors Allocation Comparison

Sectors	FXZ	PSCM
Basic Materials	72.3%	91.8%
Industrials	23.4%	-
Consumer Cyclical	4.3%	2.0%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	6.2%
Financial Services	-	0.1%
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

FXZ vs. PSCM — Risk / Return Rank

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

FXZ

FXZ Risk / Return Rank: 70
FXZ Sharpe Ratio Rank: 69
FXZ Sortino Ratio Rank: 68
FXZ Omega Ratio Rank: 62
FXZ Calmar Ratio Rank: 79
FXZ Martin Ratio Rank: 71

PSCM

PSCM Risk / Return Rank: 61
PSCM Sharpe Ratio Rank: 61
PSCM Sortino Ratio Rank: 63
PSCM Omega Ratio Rank: 54
PSCM Calmar Ratio Rank: 69
PSCM Martin Ratio Rank: 60

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.

FXZ vs. PSCM - Risk-Adjusted Trends Comparison

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

	FXZ	PSCM	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.44	+0.13
Sortino ratio: Return per unit of downside risk	2.23	2.12	+0.11
Omega ratio: Gain probability vs. loss probability	1.27	1.24	+0.03
Calmar ratio: Return relative to maximum drawdown	2.81	2.41	+0.40
Martin ratio: Return relative to average drawdown	8.65	7.19	+1.46

FXZ vs. PSCM - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 1.57, which is comparable to the PSCM Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of FXZ and PSCM, 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

FXZ vs. PSCM - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, which is greater than PSCM's maximum drawdown of -51.34%. Use the drawdown chart below to compare losses from any high point for FXZ and PSCM.

Drawdown Indicators

	FXZ	PSCM	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-51.34%	-14.12%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-14.33%	+1.58%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-35.36%	+1.37%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-35.36%	+1.37%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-51.34%	+1.93%
Current Drawdown Current decline from peak	-9.42%	-11.41%	+1.99%
Average Drawdown Average peak-to-trough decline	-11.31%	-10.86%	-0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.13%	4.79%	-0.66%

Volatility

FXZ vs. PSCM - Volatility Comparison

First Trust Materials AlphaDEX Fund (FXZ) has a higher volatility of 6.20% compared to Invesco S&P SmallCap Materials ETF (PSCM) at 5.30%. This indicates that FXZ's price experiences larger fluctuations and is considered to be riskier than PSCM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXZ	PSCM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.20%	5.30%	+0.90%
Volatility (6M) Calculated over the trailing 6-month period	17.54%	17.60%	-0.06%
Volatility (1Y) Calculated over the trailing 1-year period	22.84%	23.96%	-1.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.15%	25.73%	-1.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.94%	26.82%	-1.88%

FXZ vs. PSCM - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is higher than PSCM's 0.29% expense ratio.

Dividends

FXZ vs. PSCM - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.42%, more than PSCM's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.42%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
PSCM Invesco S&P SmallCap Materials ETF	1.04%	1.17%	0.80%	0.81%	0.93%	0.67%	1.56%	1.14%	1.25%	0.61%	0.76%	1.33%

Frequently Asked Questions

Can I hold both FXZ and PSCM in my portfolio?

FXZ and PSCM have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXZ or PSCM?

FXZ has higher volatility (6.20%) compared to PSCM (5.30%). In terms of maximum drawdown, FXZ dropped -65.46% vs PSCM's -51.34%.

Which ETF is better, FXZ or PSCM?

On 10-year performance, PSCM leads with 10.88% vs 10.25% for FXZ. On fees, PSCM is cheaper at 0.29% per year. On volatility, PSCM has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or PSCM?

Over the 10-year period, PSCM has performed better with a 10.88% return vs 10.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXZ or PSCM?

PSCM is cheaper with a 0.29% expense ratio, compared with 0.67% for FXZ.

Which ETF pays a higher dividend yield, FXZ or PSCM?

FXZ has the higher dividend yield at 1.42%, compared with 1.04% for PSCM.

What is the main difference between FXZ and PSCM?

FXZ tracks StrataQuant Materials Index, while PSCM tracks S&P Small Cap 600 / Materials -SEC. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.67% for FXZ and 0.29% for PSCM.

Which has better risk-adjusted returns?

FXZ currently has the higher Sharpe Ratio (1.57 vs 1.44), 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.