PSCF vs. KCE

Last updated Jun 4, 2026

PSCF (Invesco S&P SmallCap Financials ETF) and KCE (SPDR S&P Capital Markets ETF) are both Financials Equities funds - PSCF tracks the S&P SmallCap 600 Financials Index while KCE tracks the S&P Capital Markets Select Industry Index. Both are passively managed. Over the past 10 years, PSCF returned 6.80%/yr vs 16.37%/yr for KCE. A 0.79 correlation means they provide meaningful diversification when combined. PSCF charges 0.29%/yr vs 0.35%/yr for KCE.

Performance

PSCF vs. KCE - 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 Capital Markets ETF (KCE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCF achieves a 4.89% return, which is significantly higher than KCE's -1.07% return. Over the past 10 years, PSCF has underperformed KCE with an annualized return of 6.80%, while KCE has yielded a comparatively higher 16.37% annualized return.

PSCF

• 1D: -1.78%
• 1M: -2.06%
• YTD: 4.89%
• 6M: 5.56%
• 1Y: 16.72%
• 3Y*: 15.40%
• 5Y*: 2.81%
• 10Y*: 6.80%

KCE

• 1D: -1.85%
• 1M: -2.01%
• YTD: -1.07%
• 6M: 1.30%
• 1Y: 10.93%
• 3Y*: 23.82%
• 5Y*: 11.80%
• 10Y*: 16.37%

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

PSCF vs. KCE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCF Invesco S&P SmallCap Financials ETF	4.89%	6.19%	15.50%	6.02%	-19.34%	27.82%	-9.07%	23.13%	-8.43%	6.71%
KCE SPDR S&P Capital Markets ETF	-1.07%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%

Correlation

The correlation between PSCF and KCE is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Apr 8, 2010	0.79

The correlation between PSCF and KCE has been stable across timeframes, ranging from 0.71 to 0.81 - a consistent structural relationship.

PSCF vs. KCE - Sectors Allocation Comparison

Sectors	PSCF	KCE
Financial Services	66.9%	98.5%
Real Estate	30.8%	-
Technology	1.9%	1.5%
Industrials	0.3%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

PSCF vs. KCE — Risk / Return Rank

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

PSCF

PSCF Risk / Return Rank: 29
PSCF Sharpe Ratio Rank: 27
PSCF Sortino Ratio Rank: 27
PSCF Omega Ratio Rank: 26
PSCF Calmar Ratio Rank: 34
PSCF Martin Ratio Rank: 31

KCE

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

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. KCE - 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 Capital Markets ETF (KCE). 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.

	PSCF	KCE	Difference
Sharpe ratio Return per unit of total volatility	0.97	0.56	+0.41
Sortino ratio Return per unit of downside risk	1.47	0.87	+0.60
Omega ratio Gain probability vs. loss probability	1.18	1.11	+0.07
Calmar ratio Return relative to maximum drawdown	1.69	0.63	+1.06
Martin ratio Return relative to average drawdown	4.50	1.65	+2.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSCF vs. KCE - Sharpe Ratio Comparison

The current PSCF Sharpe Ratio is 0.97, which is higher than the KCE Sharpe Ratio of 0.56. The chart below compares the historical Sharpe Ratios of PSCF and KCE, 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

	PSCF	KCE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.97	0.56	+0.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	0.52	-0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.71	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.25	+0.12

Drawdowns

PSCF vs. KCE - Drawdown Comparison

The maximum PSCF drawdown since its inception was -45.46%, smaller than the maximum KCE drawdown of -74.00%. Use the drawdown chart below to compare losses from any high point for PSCF and KCE.

Drawdown Indicators

	PSCF	KCE	Difference
Max Drawdown Largest peak-to-trough decline	-45.46%	-74.00%	+28.54%
Max Drawdown (1Y) Largest decline over 1 year	-9.91%	-17.44%	+7.53%
Max Drawdown (3Y) Largest decline over 3 years	-24.34%	-26.31%	+1.97%
Max Drawdown (5Y) Largest decline over 5 years	-36.77%	-34.45%	-2.32%
Max Drawdown (10Y) Largest decline over 10 years	-45.46%	-40.78%	-4.68%
Current Drawdown Current decline from peak	-4.29%	-8.15%	+3.86%
Average Drawdown Average peak-to-trough decline	-8.59%	-22.81%	+14.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.72%	6.63%	-2.91%

Volatility

PSCF vs. KCE - Volatility Comparison

Invesco S&P SmallCap Financials ETF (PSCF) has a higher volatility of 4.63% compared to SPDR S&P Capital Markets ETF (KCE) at 4.24%. This indicates that PSCF's price experiences larger fluctuations and is considered to be riskier than KCE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCF	KCE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.63%	4.24%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	11.58%	14.98%	-3.40%
Volatility (1Y) Calculated over the trailing 1-year period	17.42%	19.69%	-2.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.47%	23.01%	-0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.79%	23.10%	+1.69%

PSCF vs. KCE - Expense Ratio Comparison

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

Dividends

PSCF vs. KCE - Dividend Comparison

PSCF's dividend yield for the trailing twelve months is around 2.42%, more than KCE's 1.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KCE SPDR S&P Capital Markets ETF	1.75%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%
PSCF Invesco S&P SmallCap Financials ETF	2.42%	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 KCE in my portfolio?

PSCF and KCE have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCF or KCE?

PSCF has higher volatility (4.63%) compared to KCE (4.24%). In terms of maximum drawdown, PSCF dropped -45.46% vs KCE's -74.00%.

Which ETF is better, PSCF or KCE?

On 10-year performance, KCE leads with 16.37% vs 6.80% for PSCF. On fees, PSCF is cheaper at 0.29% per year. On volatility, KCE has been the lower-risk option at 4.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCF or KCE?

Over the 10-year period, KCE has performed better with a 16.37% return vs 6.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCF or KCE?

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

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

PSCF has the higher dividend yield at 2.42%, compared with 1.75% for KCE.

What is the main difference between PSCF and KCE?

PSCF tracks S&P SmallCap 600 Financials Index, while KCE tracks S&P Capital Markets 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 KCE.

Which has better risk-adjusted returns?

PSCF currently has the higher Sharpe Ratio (0.96 vs 0.56), 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.