PSCD vs. XLY

Last updated Jun 23, 2026

PSCD (Invesco S&P SmallCap Consumer Discretionary ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both Consumer Discretionary Equities funds - PSCD tracks the S&P Small Cap 600 / Consumer Discretionary -SEC while XLY tracks the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, PSCD returned 10.45%/yr vs 12.85%/yr for XLY. A 0.73 correlation means they provide meaningful diversification when combined. PSCD charges 0.29%/yr vs 0.13%/yr for XLY.

Performance

PSCD vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) and Consumer Discretionary Select Sector SPDR Fund (XLY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCD achieves a 9.26% return, which is significantly higher than XLY's -3.36% return. Over the past 10 years, PSCD has underperformed XLY with an annualized return of 10.45%, while XLY has yielded a comparatively higher 12.85% annualized return.

PSCD

• 1D: -1.07%
• 1M: 8.23%
• YTD: 9.26%
• 6M: 7.02%
• 1Y: 16.06%
• 3Y*: 10.32%
• 5Y*: 0.94%
• 10Y*: 10.45%

XLY

• 1D: -1.70%
• 1M: -3.37%
• YTD: -3.36%
• 6M: -5.67%
• 1Y: 10.19%
• 3Y*: 12.50%
• 5Y*: 6.33%
• 10Y*: 12.85%

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

PSCD vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCD Invesco S&P SmallCap Consumer Discretionary ETF	9.26%	-2.87%	6.46%	33.23%	-28.06%	37.34%	29.07%	17.49%	-9.28%	18.16%
XLY Consumer Discretionary Select Sector SPDR Fund	-3.36%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between PSCD and XLY is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.73

The correlation between PSCD and XLY has been stable across timeframes, ranging from 0.67 to 0.73 - a consistent structural relationship.

PSCD vs. XLY - Sectors Allocation Comparison

Sectors	PSCD	XLY
Consumer Cyclical	87.0%	97.3%
Consumer Defensive	8.6%	-
Industrials	2.1%	0.1%
Technology	1.6%	0.9%
Real Estate	0.6%	-
Communication Services	0.2%	1.5%
Basic Materials	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

PSCD vs. XLY — Risk / Return Rank

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

PSCD

PSCD Risk / Return Rank: 20
PSCD Sharpe Ratio Rank: 20
PSCD Sortino Ratio Rank: 21
PSCD Omega Ratio Rank: 19
PSCD Calmar Ratio Rank: 21
PSCD Martin Ratio Rank: 20

XLY

XLY Risk / Return Rank: 17
XLY Sharpe Ratio Rank: 17
XLY Sortino Ratio Rank: 16
XLY Omega Ratio Rank: 16
XLY Calmar Ratio Rank: 17
XLY Martin Ratio Rank: 18

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.

PSCD vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) and Consumer Discretionary Select Sector SPDR Fund (XLY). 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.

	PSCD	XLY	Difference
Sharpe ratio: Return per unit of total volatility	0.66	0.55	+0.11
Sortino ratio: Return per unit of downside risk	1.14	0.89	+0.25
Omega ratio: Gain probability vs. loss probability	1.13	1.10	+0.02
Calmar ratio: Return relative to maximum drawdown	0.94	0.68	+0.26
Martin ratio: Return relative to average drawdown	2.32	2.07	+0.26

PSCD vs. XLY - Sharpe Ratio Comparison

The current PSCD Sharpe Ratio is 0.66, which is comparable to the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of PSCD and XLY, 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

PSCD vs. XLY - Drawdown Comparison

The maximum PSCD drawdown since its inception was -56.57%, roughly equal to the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for PSCD and XLY.

Drawdown Indicators

	PSCD	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-56.57%	-59.05%	+2.48%
Max Drawdown (1Y) Largest decline over 1 year	-17.14%	-14.98%	-2.16%
Max Drawdown (3Y) Largest decline over 3 years	-31.93%	-26.01%	-5.92%
Max Drawdown (5Y) Largest decline over 5 years	-40.03%	-39.67%	-0.36%
Max Drawdown (10Y) Largest decline over 10 years	-56.57%	-39.67%	-16.90%
Current Drawdown Current decline from peak	-3.30%	-7.32%	+4.02%
Average Drawdown Average peak-to-trough decline	-11.31%	-9.55%	-1.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.93%	4.94%	+1.99%

Volatility

PSCD vs. XLY - Volatility Comparison

The current volatility for Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) is 6.03%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.47%. This indicates that PSCD experiences smaller price fluctuations and is considered to be less risky than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCD	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.03%	6.47%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	16.83%	13.88%	+2.95%
Volatility (1Y) Calculated over the trailing 1-year period	24.38%	18.55%	+5.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.80%	23.90%	+3.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.10%	22.12%	+6.98%

PSCD vs. XLY - Expense Ratio Comparison

PSCD has a 0.29% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

PSCD vs. XLY - Dividend Comparison

PSCD's dividend yield for the trailing twelve months is around 1.13%, more than XLY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCD Invesco S&P SmallCap Consumer Discretionary ETF	1.13%	0.94%	1.28%	1.09%	1.60%	0.57%	0.56%	0.91%	1.39%	0.97%	1.07%	1.10%
XLY Consumer Discretionary Select Sector SPDR Fund	0.98%	0.79%	0.72%	0.78%	1.00%	0.53%	0.82%	1.28%	1.34%	1.20%	1.71%	1.43%

Frequently Asked Questions

Can I hold both PSCD and XLY in my portfolio?

PSCD and XLY have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCD or XLY?

XLY has higher volatility (6.47%) compared to PSCD (6.03%). In terms of maximum drawdown, PSCD dropped -56.57% vs XLY's -59.05%.

Which ETF is better, PSCD or XLY?

On 10-year performance, XLY leads with 12.85% vs 10.45% for PSCD. On fees, XLY is cheaper at 0.13% per year. On volatility, PSCD has been the lower-risk option at 6.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCD or XLY?

Over the 10-year period, XLY has performed better with a 12.85% return vs 10.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCD or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.29% for PSCD.

Which ETF pays a higher dividend yield, PSCD or XLY?

PSCD has the higher dividend yield at 1.13%, compared with 0.98% for XLY.

What is the main difference between PSCD and XLY?

PSCD tracks S&P Small Cap 600 / Consumer Discretionary -SEC, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCD and 0.13% for XLY.

Which has better risk-adjusted returns?

PSCD currently has the higher Sharpe Ratio (0.66 vs 0.55), 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.