PSCE vs. IEO

Last updated Jun 23, 2026

PSCE (Invesco S&P SmallCap Energy ETF) and IEO (iShares U.S. Oil & Gas Exploration & Production ETF) are both Energy Equities funds - PSCE tracks the S&P SmallCap 600 Energy Index while IEO tracks the Dow Jones U.S. Select Oil Exploration & Production Index. Both are passively managed. Over the past 10 years, PSCE returned -2.41%/yr vs 9.65%/yr for IEO. Their correlation of 0.88 suggests significant overlap in exposure. PSCE charges 0.29%/yr vs 0.42%/yr for IEO.

Performance

PSCE vs. IEO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Energy ETF (PSCE) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCE achieves a 32.45% return, which is significantly higher than IEO's 23.98% return. Over the past 10 years, PSCE has underperformed IEO with an annualized return of -2.41%, while IEO has yielded a comparatively higher 9.65% annualized return.

PSCE

• 1D: 1.31%
• 1M: -9.77%
• YTD: 32.45%
• 6M: 32.62%
• 1Y: 40.46%
• 3Y*: 10.33%
• 5Y*: 8.83%
• 10Y*: -2.41%

IEO

• 1D: 2.04%
• 1M: -7.55%
• YTD: 23.98%
• 6M: 24.56%
• 1Y: 20.16%
• 3Y*: 13.42%
• 5Y*: 17.17%
• 10Y*: 9.65%

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

PSCE vs. IEO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCE Invesco S&P SmallCap Energy ETF	32.45%	-9.00%	-5.47%	5.07%	48.45%	59.85%	-40.31%	-14.93%	-42.98%	-26.70%
IEO iShares U.S. Oil & Gas Exploration & Production ETF	23.98%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%

Correlation

The correlation between PSCE and IEO is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.88

The correlation between PSCE and IEO has been stable across timeframes, ranging from 0.85 to 0.90 - a consistent structural relationship.

PSCE vs. IEO - Sectors Allocation Comparison

Sectors	PSCE	IEO
Energy	98.5%	99.3%
Basic Materials	1.4%	0.7%
Financial Services	0.2%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PSCE vs. IEO — Risk / Return Rank

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

PSCE

PSCE Risk / Return Rank: 49
PSCE Sharpe Ratio Rank: 43
PSCE Sortino Ratio Rank: 40
PSCE Omega Ratio Rank: 38
PSCE Calmar Ratio Rank: 67
PSCE Martin Ratio Rank: 58

IEO

IEO Risk / Return Rank: 24
IEO Sharpe Ratio Rank: 23
IEO Sortino Ratio Rank: 22
IEO Omega Ratio Rank: 21
IEO Calmar Ratio Rank: 26
IEO Martin Ratio Rank: 27

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.

PSCE vs. IEO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Energy ETF (PSCE) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). 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.

	PSCE	IEO	Difference
Sharpe ratio: Return per unit of total volatility	1.48	0.79	+0.69
Sortino ratio: Return per unit of downside risk	2.01	1.18	+0.83
Omega ratio: Gain probability vs. loss probability	1.24	1.14	+0.10
Calmar ratio: Return relative to maximum drawdown	3.20	1.24	+1.96
Martin ratio: Return relative to average drawdown	9.94	3.49	+6.46

PSCE vs. IEO - Sharpe Ratio Comparison

The current PSCE Sharpe Ratio is 1.48, which is higher than the IEO Sharpe Ratio of 0.79. The chart below compares the historical Sharpe Ratios of PSCE and IEO, 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

PSCE vs. IEO - Drawdown Comparison

The maximum PSCE drawdown since its inception was -96.21%, which is greater than IEO's maximum drawdown of -79.17%. Use the drawdown chart below to compare losses from any high point for PSCE and IEO.

Drawdown Indicators

	PSCE	IEO	Difference
Max Drawdown Largest peak-to-trough decline	-96.21%	-79.17%	-17.04%
Max Drawdown (1Y) Largest decline over 1 year	-12.70%	-16.32%	+3.62%
Max Drawdown (3Y) Largest decline over 3 years	-44.57%	-31.46%	-13.11%
Max Drawdown (5Y) Largest decline over 5 years	-45.42%	-31.46%	-13.96%
Max Drawdown (10Y) Largest decline over 10 years	-90.70%	-75.00%	-15.70%
Current Drawdown Current decline from peak	-76.47%	-14.61%	-61.86%
Average Drawdown Average peak-to-trough decline	-58.87%	-26.23%	-32.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.15%	5.88%	-1.73%

Volatility

PSCE vs. IEO - Volatility Comparison

Invesco S&P SmallCap Energy ETF (PSCE) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO) have volatilities of 8.87% and 8.79%, 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

	PSCE	IEO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.87%	8.79%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	18.98%	20.20%	-1.22%
Volatility (1Y) Calculated over the trailing 1-year period	27.56%	25.71%	+1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.40%	30.53%	+6.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.22%	35.02%	+8.20%

PSCE vs. IEO - Expense Ratio Comparison

PSCE has a 0.29% expense ratio, which is lower than IEO's 0.42% expense ratio.

Dividends

PSCE vs. IEO - Dividend Comparison

PSCE's dividend yield for the trailing twelve months is around 2.72%, more than IEO's 2.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEO iShares U.S. Oil & Gas Exploration & Production ETF	2.13%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%
PSCE Invesco S&P SmallCap Energy ETF	2.72%	2.39%	1.70%	2.57%	1.70%	0.46%	0.87%	0.14%	0.22%	0.04%	0.22%	0.82%

Frequently Asked Questions

Can I hold both PSCE and IEO in my portfolio?

PSCE and IEO have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCE or IEO?

PSCE has higher volatility (8.87%) compared to IEO (8.79%). In terms of maximum drawdown, PSCE dropped -96.21% vs IEO's -79.17%.

Which ETF is better, PSCE or IEO?

On 10-year performance, IEO leads with 9.65% vs -2.41% for PSCE. On fees, PSCE is cheaper at 0.29% 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, PSCE or IEO?

Over the 10-year period, IEO has performed better with a 9.65% return vs -2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCE or IEO?

PSCE is cheaper with a 0.29% expense ratio, compared with 0.42% for IEO.

Which ETF pays a higher dividend yield, PSCE or IEO?

PSCE has the higher dividend yield at 2.72%, compared with 2.13% for IEO.

What is the main difference between PSCE and IEO?

PSCE tracks S&P SmallCap 600 Energy Index, while IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.29% for PSCE and 0.42% for IEO.

Which has better risk-adjusted returns?

PSCE currently has the higher Sharpe Ratio (1.48 vs 0.79), 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.