PSCF vs. KBE

Last updated Jun 24, 2026

PSCF (Invesco S&P SmallCap Financials ETF) and KBE (SPDR S&P Bank ETF) are both Financials Equities funds - PSCF tracks the S&P SmallCap 600 Financials Index while KBE tracks the S&P Banks Select Industry Index. Both are passively managed. Over the past 10 years, PSCF returned 7.98%/yr vs 11.09%/yr for KBE. Their correlation of 0.86 suggests significant overlap in exposure. PSCF charges 0.29%/yr vs 0.35%/yr for KBE.

Performance

PSCF vs. KBE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Financials ETF (PSCF) and SPDR S&P Bank ETF (KBE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCF achieves a 12.95% return, which is significantly higher than KBE's 11.37% return. Over the past 10 years, PSCF has underperformed KBE with an annualized return of 7.98%, while KBE has yielded a comparatively higher 11.09% annualized return.

PSCF

• 1D: 1.30%
• 1M: 4.77%
• YTD: 12.95%
• 6M: 11.09%
• 1Y: 22.91%
• 3Y*: 19.88%
• 5Y*: 4.52%
• 10Y*: 7.98%

KBE

• 1D: 1.33%
• 1M: 5.76%
• YTD: 11.37%
• 6M: 8.58%
• 1Y: 26.10%
• 3Y*: 27.71%
• 5Y*: 8.00%
• 10Y*: 11.09%

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

PSCF vs. KBE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCF Invesco S&P SmallCap Financials ETF	12.95%	6.19%	15.50%	6.02%	-19.34%	27.82%	-9.07%	23.13%	-8.43%	6.71%
KBE SPDR S&P Bank ETF	11.37%	12.36%	23.78%	5.30%	-14.83%	33.46%	-8.75%	29.78%	-19.65%	10.49%

Correlation

The correlation between PSCF and KBE is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.86

The correlation between PSCF and KBE has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.

PSCF vs. KBE - Sectors Allocation Comparison

Sectors	PSCF	KBE
Financial Services	67.3%	100.0%
Real Estate	28.8%	-
Technology	3.5%	-
Industrials	0.4%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

PSCF vs. KBE — Risk / Return Rank

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

PSCF

PSCF Risk / Return Rank: 42
PSCF Sharpe Ratio Rank: 40
PSCF Sortino Ratio Rank: 40
PSCF Omega Ratio Rank: 38
PSCF Calmar Ratio Rank: 50
PSCF Martin Ratio Rank: 41

KBE

KBE Risk / Return Rank: 35
KBE Sharpe Ratio Rank: 36
KBE Sortino Ratio Rank: 34
KBE Omega Ratio Rank: 36
KBE Calmar Ratio Rank: 37
KBE Martin Ratio Rank: 33

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.

PSCF vs. KBE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Financials ETF (PSCF) and SPDR S&P Bank ETF (KBE). 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.

	PSCF	KBE	Difference
Sharpe ratio: Return per unit of total volatility	1.32	1.22	+0.10
Sortino ratio: Return per unit of downside risk	1.94	1.74	+0.20
Omega ratio: Gain probability vs. loss probability	1.24	1.23	+0.01
Calmar ratio: Return relative to maximum drawdown	2.32	1.79	+0.53
Martin ratio: Return relative to average drawdown	6.18	4.71	+1.47

PSCF vs. KBE - Sharpe Ratio Comparison

The current PSCF Sharpe Ratio is 1.32, which is comparable to the KBE Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of PSCF and KBE, 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

PSCF vs. KBE - Drawdown Comparison

The maximum PSCF drawdown since its inception was -45.46%, smaller than the maximum KBE drawdown of -83.15%. Use the drawdown chart below to compare losses from any high point for PSCF and KBE.

Drawdown Indicators

	PSCF	KBE	Difference
Max Drawdown Largest peak-to-trough decline	-45.46%	-83.15%	+37.69%
Max Drawdown (1Y) Largest decline over 1 year	-9.91%	-14.63%	+4.72%
Max Drawdown (3Y) Largest decline over 3 years	-24.34%	-25.97%	+1.63%
Max Drawdown (5Y) Largest decline over 5 years	-36.77%	-45.25%	+8.48%
Max Drawdown (10Y) Largest decline over 10 years	-45.46%	-53.14%	+7.68%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.57%	-27.47%	+18.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.71%	5.56%	-1.85%

Volatility

PSCF vs. KBE - Volatility Comparison

The current volatility for Invesco S&P SmallCap Financials ETF (PSCF) is 4.70%, while SPDR S&P Bank ETF (KBE) has a volatility of 5.85%. This indicates that PSCF experiences smaller price fluctuations and is considered to be less risky than KBE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCF	KBE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.70%	5.85%	-1.15%
Volatility (6M) Calculated over the trailing 6-month period	11.99%	15.12%	-3.13%
Volatility (1Y) Calculated over the trailing 1-year period	17.54%	21.63%	-4.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.42%	27.25%	-4.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.77%	29.77%	-5.00%

PSCF vs. KBE - Expense Ratio Comparison

PSCF has a 0.29% expense ratio, which is lower than KBE's 0.35% expense ratio.

Dividends

PSCF vs. KBE - Dividend Comparison

PSCF's dividend yield for the trailing twelve months is around 2.22%, more than KBE's 2.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBE SPDR S&P Bank ETF	2.19%	2.51%	2.35%	2.78%	2.99%	2.16%	2.44%	2.33%	2.18%	1.36%	1.39%	1.70%
PSCF Invesco S&P SmallCap Financials ETF	2.22%	2.09%	2.48%	3.32%	2.93%	1.83%	3.57%	4.27%	4.21%	2.26%	3.01%	2.37%

Frequently Asked Questions

Can I hold both PSCF and KBE in my portfolio?

With a correlation of 0.92, PSCF and KBE 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, PSCF or KBE?

KBE has higher volatility (5.85%) compared to PSCF (4.70%). In terms of maximum drawdown, PSCF dropped -45.46% vs KBE's -83.15%.

Which ETF is better, PSCF or KBE?

On 10-year performance, KBE leads with 11.09% vs 7.98% for PSCF. On fees, PSCF is cheaper at 0.29% per year. On volatility, PSCF has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCF or KBE?

Over the 10-year period, KBE has performed better with a 11.09% return vs 7.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCF or KBE?

PSCF is cheaper with a 0.29% expense ratio, compared with 0.35% for KBE.

Which ETF pays a higher dividend yield, PSCF or KBE?

PSCF has the higher dividend yield at 2.22%, compared with 2.19% for KBE.

What is the main difference between PSCF and KBE?

PSCF tracks S&P SmallCap 600 Financials Index, while KBE tracks S&P Banks Select Industry Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCF and 0.35% for KBE.

Which has better risk-adjusted returns?

PSCF currently has the higher Sharpe Ratio (1.32 vs 1.22), 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.