PSC vs. VB

Last updated Jun 24, 2026

PSC (Principal U.S. Small Cap Multi-Factor ETF) and VB (Vanguard Small-Cap ETF) are both Small Cap Blend Equities funds - PSC tracks the Nasdaq US Small Cap Select Leaders TR Index while VB tracks the CRSP US Small Cap Index. Both are passively managed. Over the past 5 years, PSC returned 8.77%/yr vs 6.99%/yr for VB. Their correlation of 0.86 suggests significant overlap in exposure. PSC charges 0.38%/yr vs 0.05%/yr for VB.

Performance

PSC vs. VB - 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 Vanguard Small-Cap ETF (VB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSC achieves a 17.73% return, which is significantly higher than VB's 14.80% return.

PSC

• 1D: -0.58%
• 1M: 5.16%
• YTD: 17.73%
• 6M: 15.20%
• 1Y: 31.66%
• 3Y*: 19.46%
• 5Y*: 8.77%
• 10Y*: —

VB

• 1D: -0.76%
• 1M: 2.05%
• YTD: 14.80%
• 6M: 12.69%
• 1Y: 28.03%
• 3Y*: 17.24%
• 5Y*: 6.99%
• 10Y*: 11.70%

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

PSC vs. VB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSC Principal U.S. Small Cap Multi-Factor ETF	17.73%	13.41%	12.38%	18.51%	-15.91%	32.56%	13.30%	18.99%	-11.35%	15.93%
VB Vanguard Small-Cap ETF	14.80%	8.87%	14.17%	18.22%	-17.51%	17.57%	19.19%	27.34%	-9.34%	16.26%

Correlation

The correlation between PSC and VB is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Sep 22, 2016	0.86

The correlation between PSC and VB has been stable across timeframes, ranging from 0.86 to 0.96 - a consistent structural relationship.

PSC vs. VB - Sectors Allocation Comparison

Sectors	PSC	VB
Technology	20.3%	19.4%
Financial Services	17.2%	12.3%
Industrials	16.9%	20.6%
Healthcare	15.8%	11.3%
Consumer Cyclical	8.2%	10.9%
Energy	5.6%	4.2%
Real Estate	4.5%	7.5%
Basic Materials	4.2%	4.7%
Utilities	2.7%	3.1%
Communication Services	2.3%	3.0%
Consumer Defensive	2.2%	3.1%

Return for Risk

PSC vs. VB — Risk / Return Rank

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

PSC

PSC Risk / Return Rank: 57
PSC Sharpe Ratio Rank: 52
PSC Sortino Ratio Rank: 53
PSC Omega Ratio Rank: 47
PSC Calmar Ratio Rank: 68
PSC Martin Ratio Rank: 65

VB

VB Risk / Return Rank: 56
VB Sharpe Ratio Rank: 51
VB Sortino Ratio Rank: 51
VB Omega Ratio Rank: 47
VB Calmar Ratio Rank: 65
VB Martin Ratio Rank: 65

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. VB - 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 Vanguard Small-Cap ETF (VB). 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	VB	Difference
Sharpe ratio: Return per unit of total volatility	1.68	1.69	-0.02
Sortino ratio: Return per unit of downside risk	2.40	2.43	-0.03
Omega ratio: Gain probability vs. loss probability	1.29	1.29	-0.01
Calmar ratio: Return relative to maximum drawdown	3.20	3.14	+0.06
Martin ratio: Return relative to average drawdown	11.15	11.50	-0.35

PSC vs. VB - Sharpe Ratio Comparison

The current PSC Sharpe Ratio is 1.68, which is comparable to the VB Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of PSC and VB, 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. VB - Drawdown Comparison

The maximum PSC drawdown since its inception was -46.69%, smaller than the maximum VB drawdown of -59.56%. Use the drawdown chart below to compare losses from any high point for PSC and VB.

Drawdown Indicators

	PSC	VB	Difference
Max Drawdown Largest peak-to-trough decline	-46.69%	-59.56%	+12.87%
Max Drawdown (1Y) Largest decline over 1 year	-9.95%	-8.98%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-23.49%	-25.36%	+1.87%
Max Drawdown (5Y) Largest decline over 5 years	-25.86%	-28.15%	+2.29%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.05%	—
Current Drawdown Current decline from peak	-0.58%	-1.15%	+0.57%
Average Drawdown Average peak-to-trough decline	-8.23%	-8.42%	+0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.85%	2.44%	+0.41%

Volatility

PSC vs. VB - Volatility Comparison

Principal U.S. Small Cap Multi-Factor ETF (PSC) has a higher volatility of 5.38% compared to Vanguard Small-Cap ETF (VB) at 4.99%. This indicates that PSC's price experiences larger fluctuations and is considered to be riskier than VB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSC	VB	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.38%	4.99%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	13.32%	12.24%	+1.08%
Volatility (1Y) Calculated over the trailing 1-year period	18.96%	16.65%	+2.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.02%	20.79%	+0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.28%	21.42%	+1.86%

PSC vs. VB - Expense Ratio Comparison

PSC has a 0.38% expense ratio, which is higher than VB's 0.05% expense ratio.

Dividends

PSC vs. VB - Dividend Comparison

PSC's dividend yield for the trailing twelve months is around 0.57%, less than VB's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSC Principal U.S. Small Cap Multi-Factor ETF	0.57%	0.67%	0.75%	0.73%	1.92%	1.45%	1.25%	1.47%	1.30%	0.95%	0.35%	0.00%
VB Vanguard Small-Cap ETF	1.19%	1.33%	1.30%	1.55%	1.59%	1.24%	1.14%	1.39%	1.67%	1.35%	1.50%	1.48%

Frequently Asked Questions

Can I hold both PSC and VB in my portfolio?

With a correlation of 0.93, PSC and VB 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, PSC or VB?

PSC has higher volatility (5.38%) compared to VB (4.99%). In terms of maximum drawdown, PSC dropped -46.69% vs VB's -59.56%.

Which ETF is better, PSC or VB?

On 5-year performance, PSC leads with 8.77% vs 6.99% for VB. On fees, VB is cheaper at 0.05% per year. On volatility, VB has been the lower-risk option at 4.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSC or VB?

Over the 5-year period, PSC has performed better with a 8.77% return vs 6.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSC or VB?

VB is cheaper with a 0.05% expense ratio, compared with 0.38% for PSC.

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

VB has the higher dividend yield at 1.19%, compared with 0.57% for PSC.

What is the main difference between PSC and VB?

PSC tracks Nasdaq US Small Cap Select Leaders TR Index, while VB tracks CRSP US Small Cap Index. They also come from different issuers: Principal and Vanguard. Their fees differ too: 0.38% for PSC and 0.05% for VB.

Which has better risk-adjusted returns?

VB currently has the higher Sharpe Ratio (1.69 vs 1.68), 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.