PSCI vs. QQQ

Last updated Jun 24, 2026

PSCI (Invesco S&P SmallCap Industrials ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PSCI is a Industrials Equities fund tracking the S&P SmallCap 600 Industrials Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PSCI returned 15.82%/yr vs 22.07%/yr for QQQ. A 0.61 correlation means they provide meaningful diversification when combined. PSCI charges 0.29%/yr vs 0.18%/yr for QQQ.

Performance

PSCI vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Industrials ETF (PSCI) 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, PSCI achieves a 18.77% return, which is significantly higher than QQQ's 16.45% return. Over the past 10 years, PSCI has underperformed QQQ with an annualized return of 15.82%, while QQQ has yielded a comparatively higher 22.07% annualized 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%

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)

PSCI vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCI Invesco S&P SmallCap Industrials ETF	18.77%	13.50%	16.68%	31.64%	-9.02%	24.44%	12.02%	29.80%	-13.20%	17.52%
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 PSCI and QQQ is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.61

The correlation between PSCI and QQQ has been stable across timeframes, ranging from 0.55 to 0.61 - a consistent structural relationship.

PSCI vs. QQQ - Sectors Allocation Comparison

Sectors	PSCI	QQQ
Industrials	83.2%	2.6%
Technology	6.9%	58.7%
Consumer Cyclical	5.2%	11.4%
Energy	1.8%	0.5%
Real Estate	0.9%	0.1%
Basic Materials	0.9%	1.0%
Healthcare	0.5%	3.7%
Communication Services	0.3%	14.3%
Financial Services	0.1%	0.2%
Consumer Defensive	-	6.4%
Utilities	-	1.2%

Return for Risk

PSCI vs. QQQ — 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

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.

PSCI vs. QQQ - Risk-Adjusted Trends Comparison

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

	PSCI	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.90	1.95	-0.05
Sortino ratio: Return per unit of downside risk	2.75	2.57	+0.19
Omega ratio: Gain probability vs. loss probability	1.32	1.35	-0.02
Calmar ratio: Return relative to maximum drawdown	2.73	2.93	-0.20
Martin ratio: Return relative to average drawdown	9.29	10.86	-1.57

PSCI vs. QQQ - Sharpe Ratio Comparison

The current PSCI Sharpe Ratio is 1.90, which is comparable to the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of PSCI 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

PSCI vs. QQQ - Drawdown Comparison

The maximum PSCI drawdown since its inception was -45.55%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PSCI and QQQ.

Drawdown Indicators

	PSCI	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-45.55%	-82.97%	+37.42%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-11.96%	-2.92%
Max Drawdown (3Y) Largest decline over 3 years	-29.36%	-22.77%	-6.59%
Max Drawdown (5Y) Largest decline over 5 years	-29.36%	-35.12%	+5.76%
Max Drawdown (10Y) Largest decline over 10 years	-45.55%	-35.12%	-10.43%
Current Drawdown Current decline from peak	-1.73%	-4.25%	+2.52%
Average Drawdown Average peak-to-trough decline	-6.89%	-32.73%	+25.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	3.22%	+1.15%

Volatility

PSCI vs. QQQ - Volatility Comparison

The current volatility for Invesco S&P SmallCap Industrials ETF (PSCI) is 5.81%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that PSCI 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

	PSCI	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.81%	9.17%	-3.36%
Volatility (6M) Calculated over the trailing 6-month period	15.80%	14.57%	+1.23%
Volatility (1Y) Calculated over the trailing 1-year period	21.44%	17.96%	+3.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.00%	22.69%	+0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.25%	22.42%	+2.83%

PSCI vs. QQQ - Expense Ratio Comparison

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

Dividends

PSCI vs. QQQ - Dividend Comparison

PSCI's dividend yield for the trailing twelve months is around 1.33%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
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 PSCI and QQQ in my portfolio?

PSCI and QQQ have a correlation of 0.57, 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 QQQ?

QQQ has higher volatility (9.17%) compared to PSCI (5.81%). In terms of maximum drawdown, PSCI dropped -45.55% vs QQQ's -82.97%.

Which ETF is better, PSCI or QQQ?

On 10-year performance, QQQ leads with 22.07% vs 15.82% for PSCI. On fees, QQQ is cheaper at 0.18% 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 QQQ?

Over the 10-year period, QQQ has performed better with a 22.07% return vs 15.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCI or QQQ?

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

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

PSCI has the higher dividend yield at 1.33%, compared with 0.43% for QQQ.

What is the main difference between PSCI and QQQ?

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

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.95 vs 1.90), 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.