KBE vs. PSCF

Last updated Jun 24, 2026

KBE (SPDR S&P Bank ETF) and PSCF (Invesco S&P SmallCap Financials ETF) are both Financials Equities funds - KBE tracks the S&P Banks Select Industry Index while PSCF tracks the S&P SmallCap 600 Financials Index. Both are passively managed. Over the past 10 years, KBE returned 11.09%/yr vs 7.98%/yr for PSCF. Their correlation of 0.86 suggests significant overlap in exposure. KBE charges 0.35%/yr vs 0.29%/yr for PSCF.

Performance

KBE vs. PSCF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Bank ETF (KBE) and Invesco S&P SmallCap Financials ETF (PSCF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBE achieves a 11.37% return, which is significantly lower than PSCF's 12.95% return. Over the past 10 years, KBE has outperformed PSCF with an annualized return of 11.09%, while PSCF has yielded a comparatively lower 7.98% annualized return.

KBE

• 1D: 1.33%
• 1M: 5.76%
• YTD: 11.37%
• 6M: 8.58%
• 1Y: 26.10%
• 3Y*: 27.71%
• 5Y*: 8.00%
• 10Y*: 11.09%

PSCF

• 1D: 1.30%
• 1M: 4.77%
• YTD: 12.95%
• 6M: 11.09%
• 1Y: 22.91%
• 3Y*: 19.88%
• 5Y*: 4.52%
• 10Y*: 7.98%

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

KBE vs. PSCF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBE SPDR S&P Bank ETF	11.37%	12.36%	23.78%	5.30%	-14.83%	33.46%	-8.75%	29.78%	-19.65%	10.49%
PSCF Invesco S&P SmallCap Financials ETF	12.95%	6.19%	15.50%	6.02%	-19.34%	27.82%	-9.07%	23.13%	-8.43%	6.71%

Correlation

The correlation between KBE and PSCF is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.86

The correlation between KBE and PSCF has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.

KBE vs. PSCF - Sectors Allocation Comparison

Sectors	KBE	PSCF
Financial Services	100.0%	67.3%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	0.4%
Real Estate	-	28.8%
Technology	-	3.5%
Utilities	-	-

Return for Risk

KBE vs. PSCF — Risk / Return Rank

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

KBE

KBE Risk / Return Rank: 35
KBE Sharpe Ratio Rank: 36
KBE Sortino Ratio Rank: 34
KBE Omega Ratio Rank: 36
KBE Calmar Ratio Rank: 37
KBE Martin Ratio Rank: 33

PSCF

PSCF Risk / Return Rank: 42
PSCF Sharpe Ratio Rank: 40
PSCF Sortino Ratio Rank: 40
PSCF Omega Ratio Rank: 38
PSCF Calmar Ratio Rank: 50
PSCF Martin Ratio Rank: 41

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.

KBE vs. PSCF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Bank ETF (KBE) and Invesco S&P SmallCap Financials ETF (PSCF). 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.

	KBE	PSCF	Difference
Sharpe ratio: Return per unit of total volatility	1.22	1.32	-0.10
Sortino ratio: Return per unit of downside risk	1.74	1.94	-0.20
Omega ratio: Gain probability vs. loss probability	1.23	1.24	-0.01
Calmar ratio: Return relative to maximum drawdown	1.79	2.32	-0.53
Martin ratio: Return relative to average drawdown	4.71	6.18	-1.47

KBE vs. PSCF - Sharpe Ratio Comparison

The current KBE Sharpe Ratio is 1.22, which is comparable to the PSCF Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of KBE and PSCF, 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

KBE vs. PSCF - Drawdown Comparison

The maximum KBE drawdown since its inception was -83.15%, which is greater than PSCF's maximum drawdown of -45.46%. Use the drawdown chart below to compare losses from any high point for KBE and PSCF.

Drawdown Indicators

	KBE	PSCF	Difference
Max Drawdown Largest peak-to-trough decline	-83.15%	-45.46%	-37.69%
Max Drawdown (1Y) Largest decline over 1 year	-14.63%	-9.91%	-4.72%
Max Drawdown (3Y) Largest decline over 3 years	-25.97%	-24.34%	-1.63%
Max Drawdown (5Y) Largest decline over 5 years	-45.25%	-36.77%	-8.48%
Max Drawdown (10Y) Largest decline over 10 years	-53.14%	-45.46%	-7.68%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-27.47%	-8.57%	-18.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.56%	3.71%	+1.85%

Volatility

KBE vs. PSCF - Volatility Comparison

SPDR S&P Bank ETF (KBE) has a higher volatility of 5.85% compared to Invesco S&P SmallCap Financials ETF (PSCF) at 4.70%. This indicates that KBE's price experiences larger fluctuations and is considered to be riskier than PSCF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBE	PSCF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.85%	4.70%	+1.15%
Volatility (6M) Calculated over the trailing 6-month period	15.12%	11.99%	+3.13%
Volatility (1Y) Calculated over the trailing 1-year period	21.63%	17.54%	+4.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.25%	22.42%	+4.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.77%	24.77%	+5.00%

KBE vs. PSCF - Expense Ratio Comparison

KBE has a 0.35% expense ratio, which is higher than PSCF's 0.29% expense ratio.

Dividends

KBE vs. PSCF - Dividend Comparison

KBE's dividend yield for the trailing twelve months is around 2.19%, less than PSCF's 2.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBE SPDR S&P Bank ETF	2.19%	2.51%	2.35%	2.78%	2.99%	2.16%	2.44%	2.33%	2.18%	1.36%	1.39%	1.70%
PSCF Invesco S&P SmallCap Financials ETF	2.22%	2.09%	2.48%	3.32%	2.93%	1.83%	3.57%	4.27%	4.21%	2.26%	3.01%	2.37%

Frequently Asked Questions

Can I hold both KBE and PSCF in my portfolio?

With a correlation of 0.92, KBE and PSCF move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, KBE or PSCF?

KBE has higher volatility (5.85%) compared to PSCF (4.70%). In terms of maximum drawdown, KBE dropped -83.15% vs PSCF's -45.46%.

Which ETF is better, KBE or PSCF?

On 10-year performance, KBE leads with 11.09% vs 7.98% for PSCF. On fees, PSCF is cheaper at 0.29% per year. On volatility, PSCF has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBE or PSCF?

Over the 10-year period, KBE has performed better with a 11.09% return vs 7.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBE or PSCF?

PSCF is cheaper with a 0.29% expense ratio, compared with 0.35% for KBE.

Which ETF pays a higher dividend yield, KBE or PSCF?

PSCF has the higher dividend yield at 2.22%, compared with 2.19% for KBE.

What is the main difference between KBE and PSCF?

KBE tracks S&P Banks Select Industry Index, while PSCF tracks S&P SmallCap 600 Financials Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.35% for KBE and 0.29% for PSCF.

Which has better risk-adjusted returns?

PSCF currently has the higher Sharpe Ratio (1.32 vs 1.22), 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.