PSCI vs. XLI

Last updated Jun 4, 2026

PSCI (Invesco S&P SmallCap Industrials ETF) and XLI (Industrial Select Sector SPDR Fund) are both Industrials Equities funds - PSCI tracks the S&P SmallCap 600 Industrials Index while XLI tracks the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, PSCI returned 14.92%/yr vs 13.99%/yr for XLI. Their correlation of 0.82 suggests significant overlap in exposure. PSCI charges 0.29%/yr vs 0.13%/yr for XLI.

Performance

PSCI vs. XLI - Performance Comparison

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

Returns By Period

In the year-to-date period, PSCI achieves a 13.72% return, which is significantly higher than XLI's 12.52% return. Over the past 10 years, PSCI has outperformed XLI with an annualized return of 14.92%, while XLI has yielded a comparatively lower 13.99% annualized return.

PSCI

• 1D: -0.49%
• 1M: 0.56%
• YTD: 13.72%
• 6M: 13.66%
• 1Y: 35.33%
• 3Y*: 21.37%
• 5Y*: 13.36%
• 10Y*: 14.92%

XLI

• 1D: -0.08%
• 1M: 1.80%
• YTD: 12.52%
• 6M: 13.57%
• 1Y: 22.72%
• 3Y*: 21.72%
• 5Y*: 12.26%
• 10Y*: 13.99%

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

PSCI vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCI Invesco S&P SmallCap Industrials ETF	13.72%	13.50%	16.68%	31.64%	-9.02%	24.44%	12.02%	29.80%	-13.20%	17.52%
XLI Industrial Select Sector SPDR Fund	12.52%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between PSCI and XLI is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Apr 8, 2010	0.82

The correlation between PSCI and XLI has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

PSCI vs. XLI - Sectors Allocation Comparison

Sectors	PSCI	XLI
Industrials	82.9%	90.3%
Technology	7.1%	3.8%
Consumer Cyclical	5.4%	0.5%
Energy	2.1%	-
Basic Materials	0.9%	-
Real Estate	0.7%	-
Healthcare	0.5%	-
Communication Services	0.4%	-
Financial Services	0.0%	-
Consumer Defensive	-	-
Utilities	-	5.2%

Return for Risk

PSCI vs. XLI — Risk / Return Rank

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

PSCI

PSCI Risk / Return Rank: 48
PSCI Sharpe Ratio Rank: 48
PSCI Sortino Ratio Rank: 51
PSCI Omega Ratio Rank: 46
PSCI Calmar Ratio Rank: 48
PSCI Martin Ratio Rank: 49

XLI

XLI Risk / Return Rank: 41
XLI Sharpe Ratio Rank: 41
XLI Sortino Ratio Rank: 43
XLI Omega Ratio Rank: 38
XLI Calmar Ratio Rank: 37
XLI Martin Ratio Rank: 45

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. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Industrials ETF (PSCI) and Industrial Select Sector SPDR Fund (XLI). 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.

	PSCI	XLI	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.49	+0.21
Sortino ratio: Return per unit of downside risk	2.49	2.18	+0.31
Omega ratio: Gain probability vs. loss probability	1.29	1.26	+0.04
Calmar ratio: Return relative to maximum drawdown	2.39	1.87	+0.52
Martin ratio: Return relative to average drawdown	8.11	7.41	+0.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSCI vs. XLI - Sharpe Ratio Comparison

The current PSCI Sharpe Ratio is 1.69, which is comparable to the XLI Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of PSCI and XLI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PSCI	XLI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.69	1.49	+0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.58	0.71	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.70	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.45	+0.11

Drawdowns

PSCI vs. XLI - Drawdown Comparison

The maximum PSCI drawdown since its inception was -45.55%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for PSCI and XLI.

Drawdown Indicators

	PSCI	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-45.55%	-62.26%	+16.71%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-12.21%	-2.67%
Max Drawdown (3Y) Largest decline over 3 years	-29.36%	-18.49%	-10.87%
Max Drawdown (5Y) Largest decline over 5 years	-29.36%	-21.64%	-7.72%
Max Drawdown (10Y) Largest decline over 10 years	-45.55%	-42.33%	-3.22%
Current Drawdown Current decline from peak	-2.90%	-2.44%	-0.46%
Average Drawdown Average peak-to-trough decline	-6.91%	-9.21%	+2.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	3.07%	+1.30%

Volatility

PSCI vs. XLI - Volatility Comparison

Invesco S&P SmallCap Industrials ETF (PSCI) has a higher volatility of 6.10% compared to Industrial Select Sector SPDR Fund (XLI) at 4.80%. This indicates that PSCI's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCI	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.10%	4.80%	+1.30%
Volatility (6M) Calculated over the trailing 6-month period	15.45%	12.79%	+2.66%
Volatility (1Y) Calculated over the trailing 1-year period	21.05%	15.38%	+5.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.02%	17.42%	+5.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.25%	19.98%	+5.27%

PSCI vs. XLI - Expense Ratio Comparison

PSCI has a 0.29% expense ratio, which is higher than XLI's 0.13% expense ratio.

Dividends

PSCI vs. XLI - Dividend Comparison

PSCI's dividend yield for the trailing twelve months is around 1.40%, more than XLI's 1.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCI Invesco S&P SmallCap Industrials ETF	1.40%	1.56%	0.65%	0.72%	0.87%	0.69%	0.59%	0.64%	0.67%	0.71%	0.74%	1.02%
XLI Industrial Select Sector SPDR Fund	1.18%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both PSCI and XLI in my portfolio?

PSCI and XLI have a correlation of 0.84, 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 XLI?

PSCI has higher volatility (6.10%) compared to XLI (4.80%). In terms of maximum drawdown, PSCI dropped -45.55% vs XLI's -62.26%.

Which ETF is better, PSCI or XLI?

On 10-year performance, PSCI leads with 14.92% vs 13.99% for XLI. On fees, XLI is cheaper at 0.13% per year. On volatility, XLI has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCI or XLI?

Over the 10-year period, PSCI has performed better with a 14.92% return vs 13.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCI or XLI?

XLI is cheaper with a 0.13% expense ratio, compared with 0.29% for PSCI.

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

PSCI has the higher dividend yield at 1.40%, compared with 1.18% for XLI.

What is the main difference between PSCI and XLI?

PSCI tracks S&P SmallCap 600 Industrials Index, while XLI tracks Industrial Select Sector Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCI and 0.13% for XLI.

Which has better risk-adjusted returns?

PSCI currently has the higher Sharpe Ratio (1.69 vs 1.49), 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.