PSCH vs. QQQ

Last updated Jun 24, 2026

PSCH (Invesco S&P SmallCap Health Care ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PSCH is a Health & Biotech Equities fund tracking the S&P SmallCap 600 Health Care Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PSCH returned 8.18%/yr vs 22.07%/yr for QQQ. A 0.65 correlation means they provide meaningful diversification when combined. PSCH charges 0.29%/yr vs 0.18%/yr for QQQ.

Performance

PSCH vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Health Care ETF (PSCH) 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, PSCH achieves a 11.73% return, which is significantly lower than QQQ's 16.45% return. Over the past 10 years, PSCH has underperformed QQQ with an annualized return of 8.18%, while QQQ has yielded a comparatively higher 22.07% annualized return.

PSCH

• 1D: 1.22%
• 1M: 10.05%
• YTD: 11.73%
• 6M: 7.03%
• 1Y: 24.00%
• 3Y*: 4.19%
• 5Y*: -5.17%
• 10Y*: 8.18%

QQQ

• 1D: -3.29%
• 1M: -0.43%
• YTD: 16.45%
• 6M: 14.99%
• 1Y: 34.88%
• 3Y*: 26.05%
• 5Y*: 16.01%
• 10Y*: 22.07%

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

PSCH vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCH Invesco S&P SmallCap Health Care ETF	11.73%	-0.49%	3.77%	-2.71%	-25.15%	5.75%	31.47%	20.17%	9.15%	34.87%
QQQ Invesco QQQ ETF	16.45%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between PSCH and QQQ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.65

The correlation between PSCH and QQQ shifts across timeframes, from 0.48 (1 year) to 0.65 (all time), reflecting how their relationship changes across market environments.

PSCH vs. QQQ - Sectors Allocation Comparison

Sectors	PSCH	QQQ
Healthcare	97.5%	3.7%
Technology	1.5%	58.7%
Financial Services	0.9%	0.2%
Industrials	0.7%	2.6%
Basic Materials	-	1.0%
Communication Services	-	14.3%
Consumer Cyclical	-	11.4%
Consumer Defensive	-	6.4%
Energy	-	0.5%
Real Estate	-	0.1%
Utilities	-	1.2%

Return for Risk

PSCH vs. QQQ — Risk / Return Rank

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

PSCH

PSCH Risk / Return Rank: 34
PSCH Sharpe Ratio Rank: 34
PSCH Sortino Ratio Rank: 36
PSCH Omega Ratio Rank: 33
PSCH Calmar Ratio Rank: 33
PSCH Martin Ratio Rank: 34

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 61
QQQ Sortino Ratio Rank: 55
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 62

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.

PSCH vs. QQQ - Risk-Adjusted Trends Comparison

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

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.

	PSCH	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.95	-0.77
Sortino ratio: Return per unit of downside risk	1.78	2.57	-0.79
Omega ratio: Gain probability vs. loss probability	1.21	1.35	-0.13
Calmar ratio: Return relative to maximum drawdown	1.57	2.93	-1.36
Martin ratio: Return relative to average drawdown	4.73	10.86	-6.13

PSCH vs. QQQ - Sharpe Ratio Comparison

The current PSCH Sharpe Ratio is 1.18, which is lower than the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of PSCH 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.

Drawdowns

PSCH vs. QQQ - Drawdown Comparison

The maximum PSCH drawdown since its inception was -46.32%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PSCH and QQQ.

Drawdown Indicators

	PSCH	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-46.32%	-82.97%	+36.65%
Max Drawdown (1Y) Largest decline over 1 year	-15.36%	-11.96%	-3.40%
Max Drawdown (3Y) Largest decline over 3 years	-22.98%	-22.77%	-0.21%
Max Drawdown (5Y) Largest decline over 5 years	-46.32%	-35.12%	-11.20%
Max Drawdown (10Y) Largest decline over 10 years	-46.32%	-35.12%	-11.20%
Current Drawdown Current decline from peak	-23.82%	-4.25%	-19.57%
Average Drawdown Average peak-to-trough decline	-13.50%	-32.73%	+19.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.08%	3.22%	+1.86%

Volatility

PSCH vs. QQQ - Volatility Comparison

The current volatility for Invesco S&P SmallCap Health Care ETF (PSCH) is 4.90%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that PSCH experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCH	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	9.17%	-4.27%
Volatility (6M) Calculated over the trailing 6-month period	14.54%	14.57%	-0.03%
Volatility (1Y) Calculated over the trailing 1-year period	20.45%	17.96%	+2.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.94%	22.69%	+0.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.63%	22.42%	+1.21%

PSCH vs. QQQ - Expense Ratio Comparison

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

Dividends

PSCH vs. QQQ - Dividend Comparison

PSCH's dividend yield for the trailing twelve months is around 0.01%, less than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCH Invesco S&P SmallCap Health Care ETF	0.01%	0.04%	0.27%	0.01%	2.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.03%	0.00%
QQQ Invesco QQQ ETF	0.43%	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 PSCH and QQQ in my portfolio?

PSCH and QQQ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCH or QQQ?

QQQ has higher volatility (9.17%) compared to PSCH (4.90%). In terms of maximum drawdown, PSCH dropped -46.32% vs QQQ's -82.97%.

Which ETF is better, PSCH or QQQ?

On 10-year performance, QQQ leads with 22.07% vs 8.18% for PSCH. On fees, QQQ is cheaper at 0.18% per year. On volatility, PSCH has been the lower-risk option at 4.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCH or QQQ?

Over the 10-year period, QQQ has performed better with a 22.07% return vs 8.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCH or QQQ?

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

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

QQQ has the higher dividend yield at 0.43%, compared with 0.01% for PSCH.

What is the main difference between PSCH and QQQ?

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

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.95 vs 1.18), 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.