PSCH vs. XPH

Last updated Aug 4, 2026

PSCH (Invesco S&P SmallCap Health Care ETF) and XPH (SPDR S&P Pharmaceuticals ETF) are both Health & Biotech Equities funds - PSCH tracks the S&P SmallCap 600 Health Care Index while XPH tracks the S&P Pharmaceuticals Select Industry Index. Both are passively managed. Over the past 10 years, PSCH returned 8.26%/yr vs 4.80%/yr for XPH. Their 0.79 correlation means they have sometimes moved together and sometimes differently. PSCH charges 0.29%/yr vs 0.35%/yr for XPH.

Performance

PSCH vs. XPH - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with PSCH having a 21.97% return and XPH slightly higher at 22.08%. Over the past 10 years, PSCH has outperformed XPH with an annualized return of 8.26%, while XPH has yielded a comparatively lower 4.80% annualized return.

PSCH

• 1D: 0.65%
• 1M: -0.09%
• 6M: 20.27%
• YTD: 21.97%
• 1Y: 41.37%
• 3Y*: 7.41%
• 5Y*: -2.71%
• 10Y*: 8.26%
• ALL TIME*: 12.50%

XPH

• 1D: 0.25%
• 1M: 1.59%
• 6M: 19.87%
• YTD: 22.08%
• 1Y: 64.62%
• 3Y*: 17.93%
• 5Y*: 7.45%
• 10Y*: 4.80%
• ALL TIME*: 9.39%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PSCH Invesco S&P SmallCap Health Care ETF	$1.89M	$1.58M	$1.08M
XPH SPDR S&P Pharmaceuticals ETF	$7.06M	$7.70M	$5.53M

PSCH vs. XPH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCH Invesco S&P SmallCap Health Care ETF	21.97%	-0.49%	3.77%	-2.71%	-25.15%	5.75%	31.47%	20.17%	9.15%	34.87%
XPH SPDR S&P Pharmaceuticals ETF	22.08%	31.60%	4.94%	2.97%	-9.83%	-10.54%	14.68%	25.61%	-15.32%	12.05%

Correlation

The correlation between PSCH and XPH is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.76
Correlation (5Y) Shows whether the relationship held over a longer period.	0.79
Correlation (10Y) Provides a long-term view across more market conditions.	0.78
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.79

The correlation between PSCH and XPH has been stable across timeframes, ranging from 0.73 to 0.79 - a consistent structural relationship.

PSCH vs. XPH - Sectors Allocation Comparison

Sectors	PSCH	XPH
Healthcare	97.4%	100.0%
Technology	1.0%	-
Financial Services	0.9%	-
Industrials	0.7%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PSCH vs. XPH — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PSCH

PSCH Risk / Return Rank: 78
PSCH Sharpe Ratio Rank: 84
PSCH Sortino Ratio Rank: 85
PSCH Omega Ratio Rank: 80
PSCH Calmar Ratio Rank: 73
PSCH Martin Ratio Rank: 68

XPH

XPH Risk / Return Rank: 94
XPH Sharpe Ratio Rank: 95
XPH Sortino Ratio Rank: 94
XPH Omega Ratio Rank: 92
XPH Calmar Ratio Rank: 95
XPH Martin Ratio Rank: 94

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PSCH vs. XPH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Health Care ETF (PSCH) and SPDR S&P Pharmaceuticals ETF (XPH). 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	XPH	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.88	-0.81
Sortino ratio: Return per unit of downside risk	2.97	3.77	-0.81
Omega ratio: Gain probability vs. loss probability	1.35	1.46	-0.10
Calmar ratio: Return relative to maximum drawdown	2.71	5.43	-2.72
Martin ratio: Return relative to average drawdown	8.67	19.31	-10.63

PSCH vs. XPH - Sharpe Ratio Comparison

The current PSCH Sharpe Ratio is 2.07, which is comparable to the XPH Sharpe Ratio of 2.88. The chart below compares the historical Sharpe Ratios of PSCH and XPH, 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. XPH - Drawdown Comparison

The maximum PSCH drawdown since its inception was -46.32%, roughly equal to the maximum XPH drawdown of -48.03%. Use the drawdown chart below to compare losses from any high point for PSCH and XPH.

Drawdown Indicators

	PSCH	XPH	Difference
Max Drawdown Largest peak-to-trough decline	-46.32%	-48.03%	+1.71%
Max Drawdown (1Y) Largest decline over 1 year	-15.36%	-11.97%	-3.39%
Max Drawdown (3Y) Largest decline over 3 years	-22.98%	-23.57%	+0.59%
Max Drawdown (5Y) Largest decline over 5 years	-45.37%	-30.92%	-14.45%
Max Drawdown (10Y) Largest decline over 10 years	-46.32%	-35.97%	-10.35%
Current Drawdown Current decline from peak	-16.84%	-2.60%	-14.24%
Average Drawdown Average peak-to-trough decline	-13.52%	-17.12%	+3.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.78%	3.36%	+1.42%

Volatility

PSCH vs. XPH - Volatility Comparison

The current volatility for Invesco S&P SmallCap Health Care ETF (PSCH) is 4.74%, while SPDR S&P Pharmaceuticals ETF (XPH) has a volatility of 7.62%. This indicates that PSCH experiences smaller price fluctuations and is considered to be less risky than XPH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCH	XPH	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.74%	7.62%	-2.88%
Volatility (6M) Calculated over the trailing 6-month period	14.66%	17.53%	-2.87%
Volatility (1Y) Calculated over the trailing 1-year period	20.13%	22.59%	-2.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.95%	21.02%	+1.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.64%	22.14%	+1.50%

PSCH vs. XPH - Expense Ratio Comparison

PSCH has a 0.29% expense ratio, which is lower than XPH's 0.35% expense ratio.

Dividends

PSCH vs. XPH - Dividend Comparison

PSCH's dividend yield for the trailing twelve months is around 0.01%, less than XPH's 0.49% 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%
XPH SPDR S&P Pharmaceuticals ETF	0.49%	0.83%	1.58%	1.28%	1.64%	0.95%	0.47%	0.64%	0.65%	0.67%	0.63%	7.15%

Frequently Asked Questions

Can I hold both PSCH and XPH in my portfolio?

PSCH and XPH have a correlation of 0.73, 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 XPH?

XPH has higher volatility (7.62%) compared to PSCH (4.74%). In terms of maximum drawdown, PSCH dropped -46.32% vs XPH's -48.03%.

Which ETF is better, PSCH or XPH?

On 10-year performance, PSCH leads with 8.26% vs 4.80% for XPH. On fees, PSCH is cheaper at 0.29% per year. On volatility, PSCH has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCH or XPH?

Over the 10-year period, PSCH has performed better with a 8.26% return vs 4.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCH or XPH?

PSCH is cheaper with a 0.29% expense ratio, compared with 0.35% for XPH.

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

XPH has the higher dividend yield at 0.49%, compared with 0.01% for PSCH.

What is the main difference between PSCH and XPH?

PSCH tracks S&P SmallCap 600 Health Care Index, while XPH tracks S&P Pharmaceuticals Select Industry Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCH and 0.35% for XPH.

Which has better risk-adjusted returns?

XPH currently has the higher Sharpe Ratio (2.88 vs 2.07), 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.