PSC vs. ISMD

Last updated Jun 4, 2026

PSC (Principal U.S. Small Cap Multi-Factor ETF) and ISMD (Inspire Small/Mid Cap Impact ETF) are both Small Cap Blend Equities funds - PSC tracks the Nasdaq US Small Cap Select Leaders TR Index while ISMD tracks the Inspire Small/Mid Cap Impact Equal Weight Index. Both are passively managed. Over the past 5 years, PSC returned 8.06%/yr vs 7.62%/yr for ISMD. Their correlation of 0.85 suggests significant overlap in exposure. PSC charges 0.38%/yr vs 0.57%/yr for ISMD.

Performance

PSC vs. ISMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal U.S. Small Cap Multi-Factor ETF (PSC) and Inspire Small/Mid Cap Impact ETF (ISMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSC achieves a 13.84% return, which is significantly lower than ISMD's 21.54% return.

PSC

• 1D: -0.94%
• 1M: 3.79%
• YTD: 13.84%
• 6M: 13.56%
• 1Y: 27.15%
• 3Y*: 18.36%
• 5Y*: 8.06%
• 10Y*: —

ISMD

• 1D: -1.62%
• 1M: 5.36%
• YTD: 21.54%
• 6M: 20.97%
• 1Y: 36.88%
• 3Y*: 16.11%
• 5Y*: 7.62%
• 10Y*: —

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

PSC vs. ISMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSC Principal U.S. Small Cap Multi-Factor ETF	13.84%	13.41%	12.38%	18.51%	-15.91%	32.56%	13.30%	18.99%	-11.35%	13.64%
ISMD Inspire Small/Mid Cap Impact ETF	21.54%	4.14%	9.53%	16.74%	-13.44%	29.38%	7.45%	24.62%	-12.63%	8.43%

Correlation

The correlation between PSC and ISMD is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since Mar 1, 2017	0.85

The correlation between PSC and ISMD has been stable across timeframes, ranging from 0.85 to 0.92 - a consistent structural relationship.

PSC vs. ISMD - Sectors Allocation Comparison

Sectors	PSC	ISMD
Technology	20.3%	17.3%
Industrials	17.7%	17.7%
Financial Services	16.5%	15.2%
Healthcare	15.3%	9.5%
Consumer Cyclical	8.1%	11.2%
Energy	6.0%	3.3%
Real Estate	4.6%	8.9%
Basic Materials	4.2%	5.2%
Utilities	2.9%	3.3%
Consumer Defensive	2.3%	6.1%
Communication Services	2.2%	2.5%

Return for Risk

PSC vs. ISMD — Risk / Return Rank

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

PSC

PSC Risk / Return Rank: 46
PSC Sharpe Ratio Rank: 41
PSC Sortino Ratio Rank: 42
PSC Omega Ratio Rank: 38
PSC Calmar Ratio Rank: 55
PSC Martin Ratio Rank: 55

ISMD

ISMD Risk / Return Rank: 63
ISMD Sharpe Ratio Rank: 59
ISMD Sortino Ratio Rank: 60
ISMD Omega Ratio Rank: 55
ISMD Calmar Ratio Rank: 76
ISMD Martin Ratio Rank: 66

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.

PSC vs. ISMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Small Cap Multi-Factor ETF (PSC) and Inspire Small/Mid Cap Impact ETF (ISMD). 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.

	PSC	ISMD	Difference
Sharpe ratio: Return per unit of total volatility	1.46	2.01	-0.54
Sortino ratio: Return per unit of downside risk	2.14	2.82	-0.68
Omega ratio: Gain probability vs. loss probability	1.25	1.34	-0.09
Calmar ratio: Return relative to maximum drawdown	2.74	3.84	-1.10
Martin ratio: Return relative to average drawdown	9.55	12.04	-2.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSC vs. ISMD - Sharpe Ratio Comparison

The current PSC Sharpe Ratio is 1.46, which is comparable to the ISMD Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of PSC and ISMD, 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

	PSC	ISMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.46	2.01	-0.54
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	0.37	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.40	+0.10

Drawdowns

PSC vs. ISMD - Drawdown Comparison

The maximum PSC drawdown since its inception was -46.69%, roughly equal to the maximum ISMD drawdown of -44.60%. Use the drawdown chart below to compare losses from any high point for PSC and ISMD.

Drawdown Indicators

	PSC	ISMD	Difference
Max Drawdown Largest peak-to-trough decline	-46.69%	-44.60%	-2.09%
Max Drawdown (1Y) Largest decline over 1 year	-9.95%	-9.64%	-0.31%
Max Drawdown (3Y) Largest decline over 3 years	-23.49%	-26.64%	+3.15%
Max Drawdown (5Y) Largest decline over 5 years	-25.86%	-26.64%	+0.78%
Current Drawdown Current decline from peak	-0.94%	-1.62%	+0.68%
Average Drawdown Average peak-to-trough decline	-8.28%	-8.17%	-0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.85%	3.07%	-0.22%

Volatility

PSC vs. ISMD - Volatility Comparison

Principal U.S. Small Cap Multi-Factor ETF (PSC) and Inspire Small/Mid Cap Impact ETF (ISMD) have volatilities of 4.93% and 4.95%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSC	ISMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.93%	4.95%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	12.77%	12.52%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	18.65%	18.56%	+0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.99%	20.87%	+0.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.30%	23.74%	-0.44%

PSC vs. ISMD - Expense Ratio Comparison

PSC has a 0.38% expense ratio, which is lower than ISMD's 0.57% expense ratio.

Dividends

PSC vs. ISMD - Dividend Comparison

PSC's dividend yield for the trailing twelve months is around 0.58%, less than ISMD's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ISMD Inspire Small/Mid Cap Impact ETF	0.95%	1.21%	1.24%	1.17%	1.28%	9.35%	0.99%	0.88%	1.35%	2.02%	0.00%
PSC Principal U.S. Small Cap Multi-Factor ETF	0.58%	0.67%	0.75%	0.73%	1.92%	1.45%	1.25%	1.47%	1.30%	0.95%	0.35%

Frequently Asked Questions

Can I hold both PSC and ISMD in my portfolio?

PSC and ISMD have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSC or ISMD?

ISMD has higher volatility (4.95%) compared to PSC (4.93%). In terms of maximum drawdown, PSC dropped -46.69% vs ISMD's -44.60%.

Which ETF is better, PSC or ISMD?

On 5-year performance, PSC leads with 8.06% vs 7.62% for ISMD. On fees, PSC is cheaper at 0.38% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSC or ISMD?

Over the 5-year period, PSC has performed better with a 8.06% return vs 7.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSC or ISMD?

PSC is cheaper with a 0.38% expense ratio, compared with 0.57% for ISMD.

Which ETF pays a higher dividend yield, PSC or ISMD?

ISMD has the higher dividend yield at 0.95%, compared with 0.58% for PSC.

What is the main difference between PSC and ISMD?

PSC tracks Nasdaq US Small Cap Select Leaders TR Index, while ISMD tracks Inspire Small/Mid Cap Impact Equal Weight Index. They also come from different issuers: Principal and Inspire. Their fees differ too: 0.38% for PSC and 0.57% for ISMD.

Which has better risk-adjusted returns?

ISMD currently has the higher Sharpe Ratio (2.01 vs 1.46), 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.