PSCH vs. QQQM

Last updated Jun 24, 2026

PSCH (Invesco S&P SmallCap Health Care ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - PSCH is a Health & Biotech Equities fund tracking the S&P SmallCap 600 Health Care Index, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, PSCH returned -5.17%/yr vs 16.11%/yr for QQQM. A 0.58 correlation means they provide meaningful diversification when combined. PSCH charges 0.29%/yr vs 0.15%/yr for QQQM.

Performance

PSCH vs. QQQM - 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 NASDAQ 100 ETF (QQQM). 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 QQQM's 16.48% 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%

QQQM

• 1D: -3.30%
• 1M: -0.42%
• YTD: 16.48%
• 6M: 15.00%
• 1Y: 34.99%
• 3Y*: 26.15%
• 5Y*: 16.11%
• 10Y*: —

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

PSCH vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PSCH Invesco S&P SmallCap Health Care ETF	11.73%	-0.49%	3.77%	-2.71%	-25.15%	5.75%	22.27%
QQQM Invesco NASDAQ 100 ETF	16.48%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.64%

Correlation

The correlation between PSCH and QQQM is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (All Time) Calculated using the full available price history since Oct 13, 2020	0.58

The correlation between PSCH and QQQM shifts across timeframes, from 0.47 (1 year) to 0.60 (5 years), reflecting how their relationship changes across market environments.

PSCH vs. QQQM - Sectors Allocation Comparison

Sectors	PSCH	QQQM
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. QQQM — 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

QQQM

QQQM Risk / Return Rank: 60
QQQM Sharpe Ratio Rank: 61
QQQM Sortino Ratio Rank: 56
QQQM Omega Ratio Rank: 59
QQQM Calmar Ratio Rank: 61
QQQM 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. QQQM - 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 NASDAQ 100 ETF (QQQM). 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	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.97	-0.79
Sortino ratio: Return per unit of downside risk	1.78	2.58	-0.80
Omega ratio: Gain probability vs. loss probability	1.21	1.35	-0.14
Calmar ratio: Return relative to maximum drawdown	1.57	2.94	-1.37
Martin ratio: Return relative to average drawdown	4.73	10.88	-6.15

PSCH vs. QQQM - Sharpe Ratio Comparison

The current PSCH Sharpe Ratio is 1.18, which is lower than the QQQM Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of PSCH and QQQM, 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. QQQM - Drawdown Comparison

The maximum PSCH drawdown since its inception was -46.32%, which is greater than QQQM's maximum drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for PSCH and QQQM.

Drawdown Indicators

	PSCH	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-46.32%	-35.04%	-11.28%
Max Drawdown (1Y) Largest decline over 1 year	-15.36%	-11.96%	-3.40%
Max Drawdown (3Y) Largest decline over 3 years	-22.98%	-22.70%	-0.28%
Max Drawdown (5Y) Largest decline over 5 years	-46.32%	-35.04%	-11.28%
Max Drawdown (10Y) Largest decline over 10 years	-46.32%	—	—
Current Drawdown Current decline from peak	-23.82%	-4.24%	-19.58%
Average Drawdown Average peak-to-trough decline	-13.50%	-8.20%	-5.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.08%	3.22%	+1.86%

Volatility

PSCH vs. QQQM - Volatility Comparison

The current volatility for Invesco S&P SmallCap Health Care ETF (PSCH) is 4.90%, while Invesco NASDAQ 100 ETF (QQQM) has a volatility of 9.00%. This indicates that PSCH experiences smaller price fluctuations and is considered to be less risky than QQQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCH	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	9.00%	-4.10%
Volatility (6M) Calculated over the trailing 6-month period	14.54%	14.43%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	20.45%	17.85%	+2.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.94%	22.53%	+0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.63%	22.30%	+1.33%

PSCH vs. QQQM - Expense Ratio Comparison

PSCH has a 0.29% expense ratio, which is higher than QQQM's 0.15% expense ratio.

Dividends

PSCH vs. QQQM - Dividend Comparison

PSCH's dividend yield for the trailing twelve months is around 0.01%, less than QQQM's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
QQQM Invesco NASDAQ 100 ETF	0.44%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSCH and QQQM in my portfolio?

PSCH and QQQM have a correlation of 0.47, 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 QQQM?

QQQM has higher volatility (9.00%) compared to PSCH (4.90%). In terms of maximum drawdown, PSCH dropped -46.32% vs QQQM's -35.04%.

Which ETF is better, PSCH or QQQM?

On 5-year performance, QQQM leads with 16.11% vs -5.17% for PSCH. On fees, QQQM is cheaper at 0.15% 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 QQQM?

Over the 5-year period, QQQM has performed better with a 16.11% return vs -5.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCH or QQQM?

QQQM is cheaper with a 0.15% expense ratio, compared with 0.29% for PSCH.

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

QQQM has the higher dividend yield at 0.44%, compared with 0.01% for PSCH.

What is the main difference between PSCH and QQQM?

PSCH is categorized as Health & Biotech Equities, while QQQM is Nasdaq-100. PSCH tracks S&P SmallCap 600 Health Care Index, while QQQM tracks NASDAQ-100 Index. Their fees differ too: 0.29% for PSCH and 0.15% for QQQM.

Which has better risk-adjusted returns?

QQQM currently has the higher Sharpe Ratio (1.97 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.