PSC vs. QQQ

Last updated Aug 2, 2026

PSC (Principal U.S. Small Cap Multi-Factor ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PSC is a Small Cap Blend Equities fund tracking the Nasdaq US Small Cap Select Leaders TR Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, PSC returned 9.51%/yr vs 14.23%/yr for QQQ. Their 0.57 correlation means they have sometimes moved together and sometimes differently. PSC charges 0.38%/yr vs 0.18%/yr for QQQ.

Performance

PSC vs. QQQ - 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 Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSC achieves a 18.31% return, which is significantly higher than QQQ's 12.26% return.

PSC

• 1D: -0.58%
• 1M: -1.08%
• 6M: 13.74%
• YTD: 18.31%
• 1Y: 31.90%
• 3Y*: 16.31%
• 5Y*: 9.51%
• 10Y*: —
• ALL TIME*: 11.86%

QQQ

• 1D: 0.65%
• 1M: -3.45%
• 6M: 10.89%
• YTD: 12.26%
• 1Y: 24.81%
• 3Y*: 22.29%
• 5Y*: 14.23%
• 10Y*: 20.44%
• ALL TIME*: 10.64%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PSC Principal U.S. Small Cap Multi-Factor ETF	$6.70M	$7.59M	$7.79M
QQQ Invesco QQQ ETF	$30.32B	$28.40B	$31.45B

PSC vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSC Principal U.S. Small Cap Multi-Factor ETF	18.31%	13.41%	12.38%	18.51%	-15.91%	32.56%	13.30%	18.99%	-11.35%	15.93%
QQQ Invesco QQQ ETF	12.26%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between PSC and QQQ is 0.69, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.69
Correlation (3Y) Balances recent behavior with more history.	0.66
Correlation (5Y) Shows whether the relationship held over a longer period.	0.70
Correlation (All Time) Calculated using the full available price history since Sep 22, 2016	0.57

The correlation between PSC and QQQ shifts across timeframes, from 0.57 (all time) to 0.70 (5 years), reflecting how their relationship changes across market environments.

PSC vs. QQQ - Sectors Allocation Comparison

Sectors	PSC	QQQ
Technology	19.5%	60.9%
Healthcare	16.9%	3.6%
Financial Services	16.9%	0.2%
Industrials	16.8%	2.7%
Consumer Cyclical	8.1%	10.7%
Real Estate	5.3%	0.1%
Energy	5.1%	0.5%
Basic Materials	4.1%	1.0%
Communication Services	2.6%	13.1%
Utilities	2.4%	1.1%
Consumer Defensive	2.3%	6.3%

Return for Risk

PSC vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PSC

PSC Risk / Return Rank: 73
PSC Sharpe Ratio Rank: 69
PSC Sortino Ratio Rank: 71
PSC Omega Ratio Rank: 63
PSC Calmar Ratio Rank: 81
PSC Martin Ratio Rank: 80

QQQ

QQQ Risk / Return Rank: 49
QQQ Sharpe Ratio Rank: 47
QQQ Sortino Ratio Rank: 46
QQQ Omega Ratio Rank: 45
QQQ Calmar Ratio Rank: 53
QQQ Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PSC vs. QQQ - 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 Invesco QQQ ETF (QQQ). 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.

	PSC	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.58	1.16	+0.42
Sortino ratio: Return per unit of downside risk	2.30	1.65	+0.65
Omega ratio: Gain probability vs. loss probability	1.27	1.21	+0.06
Calmar ratio: Return relative to maximum drawdown	2.97	1.88	+1.10
Martin ratio: Return relative to average drawdown	10.41	6.00	+4.41

PSC vs. QQQ - Sharpe Ratio Comparison

The current PSC Sharpe Ratio is 1.58, which is higher than the QQQ Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of PSC and QQQ, 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

PSC vs. QQQ - Drawdown Comparison

The maximum PSC drawdown since its inception was -46.69%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PSC and QQQ.

Drawdown Indicators

	PSC	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-46.69%	-82.97%	+36.28%
Max Drawdown (1Y) Largest decline over 1 year	-9.95%	-11.96%	+2.01%
Max Drawdown (3Y) Largest decline over 3 years	-23.49%	-22.77%	-0.72%
Max Drawdown (5Y) Largest decline over 5 years	-25.86%	-35.12%	+9.26%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-2.78%	-7.69%	+4.91%
Average Drawdown Average peak-to-trough decline	-8.17%	-32.62%	+24.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	3.74%	-0.90%

Volatility

PSC vs. QQQ - Volatility Comparison

The current volatility for Principal U.S. Small Cap Multi-Factor ETF (PSC) is 3.84%, while Invesco QQQ ETF (QQQ) has a volatility of 6.87%. This indicates that PSC experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSC	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.84%	6.87%	-3.03%
Volatility (6M) Calculated over the trailing 6-month period	13.31%	16.08%	-2.77%
Volatility (1Y) Calculated over the trailing 1-year period	18.77%	19.38%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.88%	22.90%	-2.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.19%	22.50%	+0.69%

PSC vs. QQQ - Expense Ratio Comparison

PSC has a 0.38% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

PSC vs. QQQ - Dividend Comparison

PSC's dividend yield for the trailing twelve months is around 0.53%, more than QQQ's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSC Principal U.S. Small Cap Multi-Factor ETF	0.53%	0.67%	0.75%	0.73%	1.92%	1.45%	1.25%	1.47%	1.30%	0.95%	0.35%	0.00%
QQQ Invesco QQQ ETF	0.44%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both PSC and QQQ in my portfolio?

PSC and QQQ have a correlation of 0.69, 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 QQQ?

QQQ has higher volatility (6.87%) compared to PSC (3.84%). In terms of maximum drawdown, PSC dropped -46.69% vs QQQ's -82.97%.

Which ETF is better, PSC or QQQ?

On 5-year performance, QQQ leads with 14.23% vs 9.51% for PSC. On fees, QQQ is cheaper at 0.18% per year. On volatility, PSC has been the lower-risk option at 3.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSC or QQQ?

Over the 5-year period, QQQ has performed better with a 14.23% return vs 9.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSC or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.38% for PSC.

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

PSC has the higher dividend yield at 0.53%, compared with 0.44% for QQQ.

What is the main difference between PSC and QQQ?

PSC is categorized as Small Cap Blend Equities, while QQQ is Nasdaq-100. PSC tracks Nasdaq US Small Cap Select Leaders TR Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Principal and Invesco. Their fees differ too: 0.38% for PSC and 0.18% for QQQ.

Which has better risk-adjusted returns?

PSC currently has the higher Sharpe Ratio (1.58 vs 1.16), 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.