PSCE vs. QQQ

Last updated Jun 4, 2026

PSCE (Invesco S&P SmallCap Energy ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PSCE is a Energy Equities fund tracking the S&P SmallCap 600 Energy Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PSCE returned -1.45%/yr vs 21.94%/yr for QQQ. At a 0.39 correlation, their price movements are largely independent. PSCE charges 0.29%/yr vs 0.18%/yr for QQQ.

Performance

PSCE vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Energy ETF (PSCE) 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, PSCE achieves a 42.33% return, which is significantly higher than QQQ's 21.30% return. Over the past 10 years, PSCE has underperformed QQQ with an annualized return of -1.45%, while QQQ has yielded a comparatively higher 21.94% annualized return.

PSCE

• 1D: 0.29%
• 1M: -4.35%
• YTD: 42.33%
• 6M: 34.80%
• 1Y: 61.94%
• 3Y*: 12.72%
• 5Y*: 10.77%
• 10Y*: -1.45%

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

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

PSCE vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCE Invesco S&P SmallCap Energy ETF	42.33%	-9.00%	-5.47%	5.07%	48.45%	59.85%	-40.31%	-14.93%	-42.98%	-26.70%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between PSCE and QQQ is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Apr 8, 2010	0.39

Over the past year, the correlation between PSCE and QQQ has dropped to 0.04 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.

PSCE vs. QQQ - Sectors Allocation Comparison

Sectors	PSCE	QQQ
Energy	98.6%	0.6%
Basic Materials	1.4%	1.1%
Financial Services	0.1%	0.2%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

PSCE vs. QQQ — Risk / Return Rank

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

PSCE

PSCE Risk / Return Rank: 73
PSCE Sharpe Ratio Rank: 70
PSCE Sortino Ratio Rank: 62
PSCE Omega Ratio Rank: 58
PSCE Calmar Ratio Rank: 93
PSCE Martin Ratio Rank: 82

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Energy ETF (PSCE) 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.

	PSCE	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.32	2.64	-0.32
Sortino ratio: Return per unit of downside risk	2.92	3.45	-0.52
Omega ratio: Gain probability vs. loss probability	1.36	1.45	-0.09
Calmar ratio: Return relative to maximum drawdown	6.61	3.51	+3.10
Martin ratio: Return relative to average drawdown	16.61	13.49	+3.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSCE vs. QQQ - Sharpe Ratio Comparison

The current PSCE Sharpe Ratio is 2.32, which is comparable to the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of PSCE 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.

Sharpe Ratios by Period

	PSCE	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.32	2.64	-0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.81	-0.52
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.03	0.99	-1.02
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	0.41	-0.50

Drawdowns

PSCE vs. QQQ - Drawdown Comparison

The maximum PSCE drawdown since its inception was -96.21%, which is greater than QQQ's maximum drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PSCE and QQQ.

Drawdown Indicators

	PSCE	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-96.21%	-82.97%	-13.24%
Max Drawdown (1Y) Largest decline over 1 year	-9.41%	-11.96%	+2.55%
Max Drawdown (3Y) Largest decline over 3 years	-44.57%	-22.77%	-21.80%
Max Drawdown (5Y) Largest decline over 5 years	-45.42%	-35.12%	-10.30%
Max Drawdown (10Y) Largest decline over 10 years	-90.70%	-35.12%	-55.58%
Current Drawdown Current decline from peak	-74.71%	-0.26%	-74.45%
Average Drawdown Average peak-to-trough decline	-58.83%	-32.79%	-26.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.74%	3.11%	+0.63%

Volatility

PSCE vs. QQQ - Volatility Comparison

Invesco S&P SmallCap Energy ETF (PSCE) has a higher volatility of 7.96% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that PSCE's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCE	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.96%	4.49%	+3.47%
Volatility (6M) Calculated over the trailing 6-month period	18.54%	12.10%	+6.44%
Volatility (1Y) Calculated over the trailing 1-year period	27.01%	15.94%	+11.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.44%	22.38%	+15.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.26%	22.29%	+20.97%

PSCE vs. QQQ - Expense Ratio Comparison

PSCE has a 0.29% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

PSCE vs. QQQ - Dividend Comparison

PSCE's dividend yield for the trailing twelve months is around 1.84%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCE Invesco S&P SmallCap Energy ETF	1.84%	2.39%	1.70%	2.57%	1.70%	0.46%	0.87%	0.14%	0.22%	0.04%	0.22%	0.82%
QQQ Invesco QQQ ETF	0.38%	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 PSCE and QQQ in my portfolio?

PSCE and QQQ have a correlation of 0.04, 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 QQQ?

PSCE has higher volatility (7.96%) compared to QQQ (4.49%). In terms of maximum drawdown, PSCE dropped -96.21% vs QQQ's -82.97%.

Which ETF is better, PSCE or QQQ?

On 10-year performance, QQQ leads with 21.94% vs -1.45% for PSCE. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCE or QQQ?

Over the 10-year period, QQQ has performed better with a 21.94% return vs -1.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCE or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.29% for PSCE.

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

PSCE has the higher dividend yield at 1.84%, compared with 0.38% for QQQ.

What is the main difference between PSCE and QQQ?

PSCE is categorized as Energy Equities, while QQQ is Nasdaq-100. PSCE tracks S&P SmallCap 600 Energy Index, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.29% for PSCE and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 2.32), 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.