PSCI vs. IDEF

Last updated Jun 24, 2026

PSCI (Invesco S&P SmallCap Industrials ETF) and IDEF (iShares Defense Industrials Active ETF) are both exchange-traded funds - PSCI is a Industrials Equities fund tracking the S&P SmallCap 600 Industrials Index, while IDEF is a Aerospace & Defense fund actively managed by iShares. PSCI is passively managed, while IDEF is actively managed. Over the past year, PSCI returned 40.48% vs 16.11% for IDEF. A 0.58 correlation means they provide meaningful diversification when combined. PSCI charges 0.29%/yr vs 0.55%/yr for IDEF.

Performance

PSCI vs. IDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Industrials ETF (PSCI) and iShares Defense Industrials Active ETF (IDEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCI achieves a 18.77% return, which is significantly higher than IDEF's 2.45% return.

PSCI

• 1D: -1.73%
• 1M: 5.91%
• YTD: 18.77%
• 6M: 15.85%
• 1Y: 40.48%
• 3Y*: 22.48%
• 5Y*: 14.78%
• 10Y*: 15.82%

IDEF

• 1D: -0.60%
• 1M: -3.83%
• YTD: 2.45%
• 6M: 0.08%
• 1Y: 16.11%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PSCI vs. IDEF - Yearly Performance Comparison

	2026 (YTD)	2025
PSCI Invesco S&P SmallCap Industrials ETF	18.77%	18.76%
IDEF iShares Defense Industrials Active ETF	2.45%	21.50%

Correlation

The correlation between PSCI and IDEF is 0.58, 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	0.58
Correlation (All Time) Calculated using the full available price history since May 21, 2025	0.58

The correlation between PSCI and IDEF has been stable across timeframes, ranging from 0.58 to 0.58 - a consistent structural relationship.

PSCI vs. IDEF - Sectors Allocation Comparison

Sectors	PSCI	IDEF
Industrials	83.2%	85.4%
Technology	6.9%	11.7%
Consumer Cyclical	5.2%	-
Energy	1.8%	1.0%
Real Estate	0.9%	-
Basic Materials	0.9%	0.5%
Healthcare	0.5%	-
Communication Services	0.3%	0.0%
Financial Services	0.1%	0.1%
Consumer Defensive	-	-
Utilities	-	0.3%

Return for Risk

PSCI vs. IDEF — Risk / Return Rank

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

PSCI

PSCI Risk / Return Rank: 59
PSCI Sharpe Ratio Rank: 61
PSCI Sortino Ratio Rank: 63
PSCI Omega Ratio Rank: 55
PSCI Calmar Ratio Rank: 59
PSCI Martin Ratio Rank: 56

IDEF

IDEF Risk / Return Rank: 22
IDEF Sharpe Ratio Rank: 22
IDEF Sortino Ratio Rank: 22
IDEF Omega Ratio Rank: 20
IDEF Calmar Ratio Rank: 24
IDEF Martin Ratio Rank: 22

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.

PSCI vs. IDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Industrials ETF (PSCI) and iShares Defense Industrials Active ETF (IDEF). 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.

	PSCI	IDEF	Difference
Sharpe ratio: Return per unit of total volatility	1.90	0.73	+1.17
Sortino ratio: Return per unit of downside risk	2.75	1.18	+1.57
Omega ratio: Gain probability vs. loss probability	1.32	1.14	+0.19
Calmar ratio: Return relative to maximum drawdown	2.73	1.09	+1.64
Martin ratio: Return relative to average drawdown	9.29	2.57	+6.73

PSCI vs. IDEF - Sharpe Ratio Comparison

The current PSCI Sharpe Ratio is 1.90, which is higher than the IDEF Sharpe Ratio of 0.73. The chart below compares the historical Sharpe Ratios of PSCI and IDEF, 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

PSCI vs. IDEF - Drawdown Comparison

The maximum PSCI drawdown since its inception was -45.55%, which is greater than IDEF's maximum drawdown of -14.78%. Use the drawdown chart below to compare losses from any high point for PSCI and IDEF.

Drawdown Indicators

	PSCI	IDEF	Difference
Max Drawdown Largest peak-to-trough decline	-45.55%	-14.78%	-30.77%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-14.78%	-0.10%
Max Drawdown (3Y) Largest decline over 3 years	-29.36%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-29.36%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.55%	—	—
Current Drawdown Current decline from peak	-1.73%	-14.23%	+12.50%
Average Drawdown Average peak-to-trough decline	-6.89%	-4.30%	-2.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	6.28%	-1.91%

Volatility

PSCI vs. IDEF - Volatility Comparison

The current volatility for Invesco S&P SmallCap Industrials ETF (PSCI) is 5.81%, while iShares Defense Industrials Active ETF (IDEF) has a volatility of 8.84%. This indicates that PSCI experiences smaller price fluctuations and is considered to be less risky than IDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCI	IDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.81%	8.84%	-3.03%
Volatility (6M) Calculated over the trailing 6-month period	15.80%	18.93%	-3.13%
Volatility (1Y) Calculated over the trailing 1-year period	21.44%	22.10%	-0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.00%	21.57%	+1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.25%	21.57%	+3.68%

PSCI vs. IDEF - Expense Ratio Comparison

PSCI has a 0.29% expense ratio, which is lower than IDEF's 0.55% expense ratio.

Dividends

PSCI vs. IDEF - Dividend Comparison

PSCI's dividend yield for the trailing twelve months is around 1.33%, more than IDEF's 0.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IDEF iShares Defense Industrials Active ETF	0.34%	0.17%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PSCI Invesco S&P SmallCap Industrials ETF	1.33%	1.56%	0.65%	0.72%	0.87%	0.69%	0.59%	0.64%	0.67%	0.71%	0.74%	1.02%

Frequently Asked Questions

Can I hold both PSCI and IDEF in my portfolio?

PSCI and IDEF have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCI or IDEF?

IDEF has higher volatility (8.84%) compared to PSCI (5.81%). In terms of maximum drawdown, PSCI dropped -45.55% vs IDEF's -14.78%.

Which ETF is better, PSCI or IDEF?

On 1-year performance, PSCI leads with 40.48% vs 16.11% for IDEF. On fees, PSCI is cheaper at 0.29% per year. On volatility, PSCI has been the lower-risk option at 5.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCI or IDEF?

Over the 1-year period, PSCI has performed better with a 40.48% return vs 16.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCI or IDEF?

PSCI is cheaper with a 0.29% expense ratio, compared with 0.55% for IDEF.

Which ETF pays a higher dividend yield, PSCI or IDEF?

PSCI has the higher dividend yield at 1.33%, compared with 0.34% for IDEF.

What is the main difference between PSCI and IDEF?

PSCI is categorized as Industrials Equities, while IDEF is Aerospace & Defense. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.29% for PSCI and 0.55% for IDEF.

Which has better risk-adjusted returns?

PSCI currently has the higher Sharpe Ratio (1.90 vs 0.73), 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.