PDN vs. CUT

Last updated Jun 24, 2026

PDN (Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF) and CUT (Invesco MSCI Global Timber ETF) are both exchange-traded funds - PDN is a Foreign Small & Mid Cap Equities fund tracking the FTSE RAFI Developed x US Mid/Small, while CUT is a Materials fund tracking the Beacon Global Timber Index. Both are passively managed. Over the past 10 years, PDN returned 8.78%/yr vs 4.57%/yr for CUT. A 0.74 correlation means they provide meaningful diversification when combined. PDN charges 0.49%/yr vs 0.55%/yr for CUT.

Performance

PDN vs. CUT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) and Invesco MSCI Global Timber ETF (CUT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PDN achieves a 7.41% return, which is significantly higher than CUT's -5.45% return. Over the past 10 years, PDN has outperformed CUT with an annualized return of 8.78%, while CUT has yielded a comparatively lower 4.57% annualized return.

PDN

• 1D: -2.19%
• 1M: -3.17%
• YTD: 7.41%
• 6M: 7.22%
• 1Y: 22.25%
• 3Y*: 17.73%
• 5Y*: 6.30%
• 10Y*: 8.78%

CUT

• 1D: -1.14%
• 1M: 1.85%
• YTD: -5.45%
• 6M: -4.37%
• 1Y: -6.01%
• 3Y*: 1.17%
• 5Y*: -3.62%
• 10Y*: 4.57%

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

PDN vs. CUT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF	7.41%	38.34%	0.57%	13.35%	-17.35%	9.03%	10.65%	19.17%	-18.38%	30.74%
CUT Invesco MSCI Global Timber ETF	-5.45%	-5.92%	1.82%	8.65%	-16.38%	12.29%	18.05%	23.35%	-21.70%	30.41%

Correlation

The correlation between PDN and CUT is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Nov 9, 2007	0.74

The correlation between PDN and CUT has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

PDN vs. CUT - Sectors Allocation Comparison

Sectors	PDN	CUT
Industrials	23.2%	5.1%
Financial Services	12.7%	0.3%
Consumer Cyclical	11.7%	41.5%
Basic Materials	10.5%	49.4%
Technology	10.1%	0.1%
Real Estate	8.7%	4.5%
Healthcare	5.7%	-
Consumer Defensive	5.3%	0.2%
Energy	4.8%	-
Communication Services	4.5%	-
Utilities	2.7%	-

Return for Risk

PDN vs. CUT — Risk / Return Rank

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

PDN

PDN Risk / Return Rank: 44
PDN Sharpe Ratio Rank: 44
PDN Sortino Ratio Rank: 44
PDN Omega Ratio Rank: 44
PDN Calmar Ratio Rank: 42
PDN Martin Ratio Rank: 47

CUT

CUT Risk / Return Rank: 6
CUT Sharpe Ratio Rank: 6
CUT Sortino Ratio Rank: 6
CUT Omega Ratio Rank: 6
CUT Calmar Ratio Rank: 6
CUT Martin Ratio Rank: 6

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.

PDN vs. CUT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) and Invesco MSCI Global Timber ETF (CUT). 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.

	PDN	CUT	Difference
Sharpe ratio: Return per unit of total volatility	1.46	-0.32	+1.78
Sortino ratio: Return per unit of downside risk	2.08	-0.34	+2.41
Omega ratio: Gain probability vs. loss probability	1.27	0.96	+0.31
Calmar ratio: Return relative to maximum drawdown	1.99	-0.31	+2.29
Martin ratio: Return relative to average drawdown	7.45	-0.63	+8.08

PDN vs. CUT - Sharpe Ratio Comparison

The current PDN Sharpe Ratio is 1.46, which is higher than the CUT Sharpe Ratio of -0.32. The chart below compares the historical Sharpe Ratios of PDN and CUT, 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

PDN vs. CUT - Drawdown Comparison

The maximum PDN drawdown since its inception was -59.32%, smaller than the maximum CUT drawdown of -70.03%. Use the drawdown chart below to compare losses from any high point for PDN and CUT.

Drawdown Indicators

	PDN	CUT	Difference
Max Drawdown Largest peak-to-trough decline	-59.32%	-70.03%	+10.71%
Max Drawdown (1Y) Largest decline over 1 year	-11.26%	-19.62%	+8.36%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-22.23%	+8.98%
Max Drawdown (5Y) Largest decline over 5 years	-33.68%	-30.40%	-3.28%
Max Drawdown (10Y) Largest decline over 10 years	-41.94%	-45.76%	+3.82%
Current Drawdown Current decline from peak	-5.11%	-22.89%	+17.78%
Average Drawdown Average peak-to-trough decline	-11.57%	-15.28%	+3.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	9.55%	-6.56%

Volatility

PDN vs. CUT - Volatility Comparison

Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) has a higher volatility of 5.67% compared to Invesco MSCI Global Timber ETF (CUT) at 5.08%. This indicates that PDN's price experiences larger fluctuations and is considered to be riskier than CUT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PDN	CUT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.67%	5.08%	+0.59%
Volatility (6M) Calculated over the trailing 6-month period	13.10%	14.26%	-1.16%
Volatility (1Y) Calculated over the trailing 1-year period	15.37%	18.86%	-3.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.47%	18.52%	-2.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.96%	20.12%	-3.16%

PDN vs. CUT - Expense Ratio Comparison

PDN has a 0.49% expense ratio, which is lower than CUT's 0.55% expense ratio.

Dividends

PDN vs. CUT - Dividend Comparison

PDN's dividend yield for the trailing twelve months is around 3.32%, more than CUT's 2.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CUT Invesco MSCI Global Timber ETF	2.60%	2.46%	3.05%	2.44%	2.58%	1.57%	1.65%	2.67%	3.43%	1.57%	2.08%	1.52%
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF	3.32%	3.36%	3.36%	3.16%	2.68%	2.42%	1.79%	2.60%	2.21%	2.42%	2.16%	2.06%

Frequently Asked Questions

Can I hold both PDN and CUT in my portfolio?

PDN and CUT have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PDN or CUT?

PDN has higher volatility (5.67%) compared to CUT (5.08%). In terms of maximum drawdown, PDN dropped -59.32% vs CUT's -70.03%.

Which ETF is better, PDN or CUT?

On 10-year performance, PDN leads with 8.78% vs 4.57% for CUT. On fees, PDN is cheaper at 0.49% per year. On volatility, CUT has been the lower-risk option at 5.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PDN or CUT?

Over the 10-year period, PDN has performed better with a 8.78% return vs 4.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PDN or CUT?

PDN is cheaper with a 0.49% expense ratio, compared with 0.55% for CUT.

Which ETF pays a higher dividend yield, PDN or CUT?

PDN has the higher dividend yield at 3.32%, compared with 2.60% for CUT.

What is the main difference between PDN and CUT?

PDN is categorized as Foreign Small & Mid Cap Equities, while CUT is Materials. PDN tracks FTSE RAFI Developed x US Mid/Small, while CUT tracks Beacon Global Timber Index. Their fees differ too: 0.49% for PDN and 0.55% for CUT.

Which has better risk-adjusted returns?

PDN currently has the higher Sharpe Ratio (1.46 vs -0.32), 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.