PBW vs. ESML

Last updated Jun 4, 2026

PBW (Invesco WilderHill Clean Energy ETF) and ESML (iShares ESG Aware MSCI USA Small-Cap ETF) are both Small Cap Growth Equities funds - PBW tracks the The WilderHill Clean Energy Index (AMEX) while ESML tracks the MSCI USA Small Cap Extended ESG Focus Index. Both are passively managed. Over the past 5 years, PBW returned -10.05%/yr vs 7.18%/yr for ESML. A 0.75 correlation means they provide meaningful diversification when combined. PBW charges 0.61%/yr vs 0.17%/yr for ESML.

Performance

PBW vs. ESML - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco WilderHill Clean Energy ETF (PBW) and iShares ESG Aware MSCI USA Small-Cap ETF (ESML). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PBW achieves a 48.64% return, which is significantly higher than ESML's 16.26% return.

PBW

• 1D: -3.49%
• 1M: 18.16%
• YTD: 48.64%
• 6M: 46.91%
• 1Y: 151.19%
• 3Y*: 8.19%
• 5Y*: -10.05%
• 10Y*: 11.06%

ESML

• 1D: -0.47%
• 1M: 3.86%
• YTD: 16.26%
• 6M: 15.99%
• 1Y: 34.21%
• 3Y*: 17.27%
• 5Y*: 7.18%
• 10Y*: —

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

PBW vs. ESML - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
PBW Invesco WilderHill Clean Energy ETF	48.64%	53.96%	-30.77%	-20.03%	-44.55%	-29.86%	204.82%	62.58%	-13.99%
ESML iShares ESG Aware MSCI USA Small-Cap ETF	16.26%	10.62%	12.01%	17.27%	-17.28%	19.28%	19.56%	29.12%	-10.89%

Correlation

The correlation between PBW and ESML is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (All Time) Calculated using the full available price history since Apr 13, 2018	0.75

The correlation between PBW and ESML has been stable across timeframes, ranging from 0.70 to 0.76 - a consistent structural relationship.

PBW vs. ESML - Sectors Allocation Comparison

Sectors	PBW	ESML
Industrials	34.3%	19.3%
Basic Materials	16.4%	3.9%
Technology	14.3%	17.5%
Consumer Cyclical	13.9%	11.3%
Energy	12.3%	5.9%
Utilities	6.3%	2.7%
Financial Services	1.4%	14.4%
Consumer Defensive	1.1%	3.7%
Communication Services	-	2.2%
Healthcare	-	12.6%
Real Estate	-	6.5%

Return for Risk

PBW vs. ESML — Risk / Return Rank

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

PBW

PBW Risk / Return Rank: 88
PBW Sharpe Ratio Rank: 94
PBW Sortino Ratio Rank: 86
PBW Omega Ratio Rank: 79
PBW Calmar Ratio Rank: 94
PBW Martin Ratio Rank: 88

ESML

ESML Risk / Return Rank: 66
ESML Sharpe Ratio Rank: 61
ESML Sortino Ratio Rank: 62
ESML Omega Ratio Rank: 57
ESML Calmar Ratio Rank: 75
ESML Martin Ratio Rank: 74

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.

PBW vs. ESML - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco WilderHill Clean Energy ETF (PBW) and iShares ESG Aware MSCI USA Small-Cap ETF (ESML). 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.

	PBW	ESML	Difference
Sharpe ratio: Return per unit of total volatility	3.77	2.07	+1.70
Sortino ratio: Return per unit of downside risk	3.92	2.95	+0.97
Omega ratio: Gain probability vs. loss probability	1.48	1.35	+0.12
Calmar ratio: Return relative to maximum drawdown	7.16	3.80	+3.36
Martin ratio: Return relative to average drawdown	19.88	14.00	+5.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PBW vs. ESML - Sharpe Ratio Comparison

The current PBW Sharpe Ratio is 3.77, which is higher than the ESML Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of PBW and ESML, 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

	PBW	ESML	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.77	2.07	+1.70
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.24	0.34	-0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.03	0.46	-0.49

Drawdowns

PBW vs. ESML - Drawdown Comparison

The maximum PBW drawdown since its inception was -89.02%, which is greater than ESML's maximum drawdown of -41.97%. Use the drawdown chart below to compare losses from any high point for PBW and ESML.

Drawdown Indicators

	PBW	ESML	Difference
Max Drawdown Largest peak-to-trough decline	-89.02%	-41.97%	-47.05%
Max Drawdown (1Y) Largest decline over 1 year	-21.24%	-9.04%	-12.20%
Max Drawdown (3Y) Largest decline over 3 years	-68.04%	-26.68%	-41.36%
Max Drawdown (5Y) Largest decline over 5 years	-84.50%	-28.61%	-55.89%
Max Drawdown (10Y) Largest decline over 10 years	-89.02%	—	—
Current Drawdown Current decline from peak	-62.54%	-0.47%	-62.07%
Average Drawdown Average peak-to-trough decline	-62.91%	-8.97%	-53.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.64%	2.45%	+5.19%

Volatility

PBW vs. ESML - Volatility Comparison

Invesco WilderHill Clean Energy ETF (PBW) has a higher volatility of 13.35% compared to iShares ESG Aware MSCI USA Small-Cap ETF (ESML) at 4.25%. This indicates that PBW's price experiences larger fluctuations and is considered to be riskier than ESML based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PBW	ESML	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.35%	4.25%	+9.10%
Volatility (6M) Calculated over the trailing 6-month period	28.20%	11.67%	+16.53%
Volatility (1Y) Calculated over the trailing 1-year period	40.48%	16.66%	+23.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.91%	21.23%	+21.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.76%	23.40%	+15.36%

PBW vs. ESML - Expense Ratio Comparison

PBW has a 0.61% expense ratio, which is higher than ESML's 0.17% expense ratio.

Dividends

PBW vs. ESML - Dividend Comparison

PBW's dividend yield for the trailing twelve months is around 0.60%, less than ESML's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESML iShares ESG Aware MSCI USA Small-Cap ETF	0.95%	1.08%	1.22%	1.31%	1.46%	0.94%	0.99%	1.10%	1.07%	0.00%	0.00%	0.00%
PBW Invesco WilderHill Clean Energy ETF	0.60%	0.79%	2.84%	3.68%	4.21%	1.71%	0.44%	1.45%	2.04%	1.28%	2.68%	1.53%

Frequently Asked Questions

Can I hold both PBW and ESML in my portfolio?

PBW and ESML have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBW or ESML?

PBW has higher volatility (13.35%) compared to ESML (4.25%). In terms of maximum drawdown, PBW dropped -89.02% vs ESML's -41.97%.

Which ETF is better, PBW or ESML?

On 5-year performance, ESML leads with 7.18% vs -10.05% for PBW. On fees, ESML is cheaper at 0.17% per year. On volatility, ESML has been the lower-risk option at 4.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PBW or ESML?

Over the 5-year period, ESML has performed better with a 7.18% return vs -10.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PBW or ESML?

ESML is cheaper with a 0.17% expense ratio, compared with 0.61% for PBW.

Which ETF pays a higher dividend yield, PBW or ESML?

ESML has the higher dividend yield at 0.95%, compared with 0.60% for PBW.

What is the main difference between PBW and ESML?

PBW tracks The WilderHill Clean Energy Index (AMEX), while ESML tracks MSCI USA Small Cap Extended ESG Focus Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.61% for PBW and 0.17% for ESML.

Which has better risk-adjusted returns?

PBW currently has the higher Sharpe Ratio (3.77 vs 2.07), 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.