PDN vs. VSS

Last updated Jun 23, 2026

PDN (Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds - PDN tracks the FTSE RAFI Developed x US Mid/Small while VSS tracks the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, PDN returned 9.02%/yr vs 8.76%/yr for VSS. Their correlation of 0.90 suggests significant overlap in exposure. PDN charges 0.49%/yr vs 0.07%/yr for VSS.

Performance

PDN vs. VSS - 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 Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PDN achieves a 9.82% return, which is significantly lower than VSS's 10.76% return. Both investments have delivered pretty close results over the past 10 years, with PDN having a 9.02% annualized return and VSS not far behind at 8.76%.

PDN

• 1D: -0.16%
• 1M: -1.00%
• YTD: 9.82%
• 6M: 10.25%
• 1Y: 25.89%
• 3Y*: 18.60%
• 5Y*: 6.89%
• 10Y*: 9.02%

VSS

• 1D: 0.22%
• 1M: -0.37%
• YTD: 10.76%
• 6M: 11.06%
• 1Y: 26.93%
• 3Y*: 17.08%
• 5Y*: 6.23%
• 10Y*: 8.76%

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

PDN vs. VSS - 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	9.82%	38.34%	0.57%	13.35%	-17.35%	9.03%	10.65%	19.17%	-18.38%	30.74%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.76%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between PDN and VSS is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.90

The correlation between PDN and VSS has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

PDN vs. VSS - Sectors Allocation Comparison

Sectors	PDN	VSS
Industrials	23.2%	18.7%
Financial Services	12.7%	10.1%
Consumer Cyclical	11.7%	9.1%
Basic Materials	10.5%	12.2%
Technology	10.1%	14.5%
Real Estate	8.7%	7.1%
Healthcare	5.7%	6.0%
Consumer Defensive	5.3%	3.5%
Energy	4.8%	4.4%
Communication Services	4.5%	2.3%
Utilities	2.7%	2.5%

Return for Risk

PDN vs. VSS — Risk / Return Rank

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

PDN

PDN Risk / Return Rank: 51
PDN Sharpe Ratio Rank: 51
PDN Sortino Ratio Rank: 51
PDN Omega Ratio Rank: 51
PDN Calmar Ratio Rank: 48
PDN Martin Ratio Rank: 52

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 50
VSS Omega Ratio Rank: 53
VSS Calmar Ratio Rank: 48
VSS Martin Ratio Rank: 52

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. VSS - 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 Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.71	1.74	-0.03
Sortino ratio: Return per unit of downside risk	2.42	2.38	+0.04
Omega ratio: Gain probability vs. loss probability	1.31	1.32	-0.01
Calmar ratio: Return relative to maximum drawdown	2.31	2.33	-0.02
Martin ratio: Return relative to average drawdown	8.72	8.70	+0.02

PDN vs. VSS - Sharpe Ratio Comparison

The current PDN Sharpe Ratio is 1.71, which is comparable to the VSS Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of PDN and VSS, 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. VSS - Drawdown Comparison

The maximum PDN drawdown since its inception was -59.32%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for PDN and VSS.

Drawdown Indicators

	PDN	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-59.32%	-43.51%	-15.81%
Max Drawdown (1Y) Largest decline over 1 year	-11.26%	-11.62%	+0.36%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-15.73%	+2.48%
Max Drawdown (5Y) Largest decline over 5 years	-33.68%	-33.93%	+0.25%
Max Drawdown (10Y) Largest decline over 10 years	-41.94%	-43.51%	+1.57%
Current Drawdown Current decline from peak	-2.98%	-2.41%	-0.57%
Average Drawdown Average peak-to-trough decline	-11.57%	-9.62%	-1.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	3.10%	-0.12%

Volatility

PDN vs. VSS - Volatility Comparison

The current volatility for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) is 5.26%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 5.97%. This indicates that PDN experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PDN	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.26%	5.97%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	12.91%	13.61%	-0.70%
Volatility (1Y) Calculated over the trailing 1-year period	15.23%	15.59%	-0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.44%	16.59%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.06%	17.28%	-0.22%

PDN vs. VSS - Expense Ratio Comparison

PDN has a 0.49% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

PDN vs. VSS - Dividend Comparison

PDN's dividend yield for the trailing twelve months is around 4.04%, more than VSS's 3.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF	3.25%	3.36%	3.36%	3.16%	2.68%	2.42%	1.79%	2.60%	2.21%	2.42%	2.16%	2.06%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.15%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both PDN and VSS in my portfolio?

With a correlation of 0.95, PDN and VSS 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, PDN or VSS?

VSS has higher volatility (5.97%) compared to PDN (5.26%). In terms of maximum drawdown, PDN dropped -59.32% vs VSS's -43.51%.

Which ETF is better, PDN or VSS?

On 10-year performance, PDN leads with 9.02% vs 8.76% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, PDN has been the lower-risk option at 5.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PDN or VSS?

Over the 10-year period, PDN has performed better with a 9.02% return vs 8.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PDN or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.49% for PDN.

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

PDN has the higher dividend yield at 4.04%, compared with 3.15% for VSS.

What is the main difference between PDN and VSS?

PDN tracks FTSE RAFI Developed x US Mid/Small, while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.49% for PDN and 0.07% for VSS.

Which has better risk-adjusted returns?

VSS currently has the higher Sharpe Ratio (1.74 vs 1.71), 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.