PSCI vs. XAR

Last updated Jun 23, 2026

PSCI (Invesco S&P SmallCap Industrials ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - PSCI is a Industrials Equities fund tracking the S&P SmallCap 600 Industrials Index, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 10 years, PSCI returned 16.02%/yr vs 18.54%/yr for XAR. A 0.74 correlation means they provide meaningful diversification when combined. PSCI charges 0.29%/yr vs 0.35%/yr for XAR.

Performance

PSCI vs. XAR - Performance Comparison

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

Returns By Period

In the year-to-date period, PSCI achieves a 20.86% return, which is significantly higher than XAR's 15.26% return. Over the past 10 years, PSCI has underperformed XAR with an annualized return of 16.02%, while XAR has yielded a comparatively higher 18.54% annualized return.

PSCI

• 1D: 0.55%
• 1M: 7.77%
• YTD: 20.86%
• 6M: 17.66%
• 1Y: 45.26%
• 3Y*: 23.19%
• 5Y*: 15.51%
• 10Y*: 16.02%

XAR

• 1D: -2.24%
• 1M: 2.49%
• YTD: 15.26%
• 6M: 11.31%
• 1Y: 40.45%
• 3Y*: 33.82%
• 5Y*: 16.54%
• 10Y*: 18.54%

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

PSCI vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCI Invesco S&P SmallCap Industrials ETF	20.86%	13.50%	16.68%	31.64%	-9.02%	24.44%	12.02%	29.80%	-13.20%	17.52%
XAR SPDR S&P Aerospace & Defense ETF	15.26%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%

Correlation

The correlation between PSCI and XAR is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.74

The correlation between PSCI and XAR shifts across timeframes, from 0.65 (1 year) to 0.76 (10 years), reflecting how their relationship changes across market environments.

PSCI vs. XAR - Sectors Allocation Comparison

Sectors	PSCI	XAR
Industrials	83.2%	99.3%
Technology	6.9%	0.7%
Consumer Cyclical	5.2%	-
Energy	1.8%	-
Real Estate	0.9%	-
Basic Materials	0.9%	-
Healthcare	0.5%	-
Communication Services	0.3%	-
Financial Services	0.1%	-
Consumer Defensive	-	-
Utilities	-	-

Return for Risk

PSCI vs. XAR — Risk / Return Rank

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

PSCI

PSCI Risk / Return Rank: 64
PSCI Sharpe Ratio Rank: 68
PSCI Sortino Ratio Rank: 69
PSCI Omega Ratio Rank: 60
PSCI Calmar Ratio Rank: 63
PSCI Martin Ratio Rank: 60

XAR

XAR Risk / Return Rank: 43
XAR Sharpe Ratio Rank: 42
XAR Sortino Ratio Rank: 43
XAR Omega Ratio Rank: 37
XAR Calmar Ratio Rank: 49
XAR Martin Ratio Rank: 42

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. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Industrials ETF (PSCI) and SPDR S&P Aerospace & Defense ETF (XAR). 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	XAR	Difference
Sharpe ratio: Return per unit of total volatility	2.13	1.45	+0.68
Sortino ratio: Return per unit of downside risk	3.03	2.13	+0.90
Omega ratio: Gain probability vs. loss probability	1.36	1.24	+0.11
Calmar ratio: Return relative to maximum drawdown	3.06	2.36	+0.70
Martin ratio: Return relative to average drawdown	10.40	6.60	+3.80

PSCI vs. XAR - Sharpe Ratio Comparison

The current PSCI Sharpe Ratio is 2.13, which is higher than the XAR Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of PSCI and XAR, 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. XAR - Drawdown Comparison

The maximum PSCI drawdown since its inception was -45.55%, roughly equal to the maximum XAR drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for PSCI and XAR.

Drawdown Indicators

	PSCI	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-45.55%	-46.37%	+0.82%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-17.22%	+2.34%
Max Drawdown (3Y) Largest decline over 3 years	-29.36%	-19.73%	-9.63%
Max Drawdown (5Y) Largest decline over 5 years	-29.36%	-32.40%	+3.04%
Max Drawdown (10Y) Largest decline over 10 years	-45.55%	-46.37%	+0.82%
Current Drawdown Current decline from peak	0.00%	-5.02%	+5.02%
Average Drawdown Average peak-to-trough decline	-6.89%	-6.78%	-0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	6.15%	-1.78%

Volatility

PSCI vs. XAR - Volatility Comparison

The current volatility for Invesco S&P SmallCap Industrials ETF (PSCI) is 5.39%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 10.60%. This indicates that PSCI experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCI	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.39%	10.60%	-5.21%
Volatility (6M) Calculated over the trailing 6-month period	15.69%	23.50%	-7.81%
Volatility (1Y) Calculated over the trailing 1-year period	21.40%	28.02%	-6.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.99%	23.69%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.29%	24.77%	+0.52%

PSCI vs. XAR - Expense Ratio Comparison

PSCI has a 0.29% expense ratio, which is lower than XAR's 0.35% expense ratio.

Dividends

PSCI vs. XAR - Dividend Comparison

PSCI's dividend yield for the trailing twelve months is around 1.42%, more than XAR's 0.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCI Invesco S&P SmallCap Industrials ETF	1.31%	1.56%	0.65%	0.72%	0.87%	0.69%	0.59%	0.64%	0.67%	0.71%	0.74%	1.02%
XAR SPDR S&P Aerospace & Defense ETF	0.29%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both PSCI and XAR in my portfolio?

PSCI and XAR have a correlation of 0.65, 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 XAR?

XAR has higher volatility (10.60%) compared to PSCI (5.39%). In terms of maximum drawdown, PSCI dropped -45.55% vs XAR's -46.37%.

Which ETF is better, PSCI or XAR?

On 10-year performance, XAR leads with 18.54% vs 16.02% for PSCI. On fees, PSCI is cheaper at 0.29% per year. On volatility, PSCI has been the lower-risk option at 5.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCI or XAR?

Over the 10-year period, XAR has performed better with a 18.54% return vs 16.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCI or XAR?

PSCI is cheaper with a 0.29% expense ratio, compared with 0.35% for XAR.

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

PSCI has the higher dividend yield at 1.42%, compared with 0.34% for XAR.

What is the main difference between PSCI and XAR?

PSCI is categorized as Industrials Equities, while XAR is Aerospace & Defense. PSCI tracks S&P SmallCap 600 Industrials Index, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCI and 0.35% for XAR.

Which has better risk-adjusted returns?

PSCI currently has the higher Sharpe Ratio (2.13 vs 1.45), 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.