PSCM vs. FXZ

Last updated Jun 24, 2026

PSCM (Invesco S&P SmallCap Materials ETF) and FXZ (First Trust Materials AlphaDEX Fund) are both Materials funds - PSCM tracks the S&P Small Cap 600 / Materials -SEC while FXZ tracks the StrataQuant Materials Index. Both are passively managed. Over the past 10 years, PSCM returned 12.85%/yr vs 11.46%/yr for FXZ. A 0.76 correlation means they provide meaningful diversification when combined. PSCM charges 0.29%/yr vs 0.67%/yr for FXZ.

Performance

PSCM vs. FXZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Materials ETF (PSCM) and First Trust Materials AlphaDEX Fund (FXZ). 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 PSCM having a 23.80% return and FXZ slightly higher at 24.42%. Over the past 10 years, PSCM has outperformed FXZ with an annualized return of 12.85%, while FXZ has yielded a comparatively lower 11.46% annualized return.

PSCM

• 1D: -2.69%
• 1M: 1.68%
• YTD: 23.80%
• 6M: 22.73%
• 1Y: 53.82%
• 3Y*: 18.03%
• 5Y*: 10.65%
• 10Y*: 12.85%

FXZ

• 1D: -2.45%
• 1M: 0.61%
• YTD: 24.42%
• 6M: 22.36%
• 1Y: 44.84%
• 3Y*: 11.20%
• 5Y*: 8.66%
• 10Y*: 11.46%

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

PSCM vs. FXZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCM Invesco S&P SmallCap Materials ETF	23.80%	15.59%	0.67%	19.86%	-6.45%	18.02%	22.18%	21.75%	-23.28%	10.37%
FXZ First Trust Materials AlphaDEX Fund	24.42%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%

Correlation

The correlation between PSCM and FXZ is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.76

The correlation between PSCM and FXZ shifts across timeframes, from 0.76 (all time) to 0.86 (5 years), reflecting how their relationship changes across market environments.

PSCM vs. FXZ - Sectors Allocation Comparison

Sectors	PSCM	FXZ
Basic Materials	90.9%	76.9%
Energy	7.1%	-
Consumer Cyclical	1.8%	5.1%
Financial Services	0.1%	-
Communication Services	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	15.4%
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PSCM vs. FXZ — Risk / Return Rank

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

PSCM

PSCM Risk / Return Rank: 74
PSCM Sharpe Ratio Rank: 75
PSCM Sortino Ratio Rank: 75
PSCM Omega Ratio Rank: 62
PSCM Calmar Ratio Rank: 78
PSCM Martin Ratio Rank: 78

FXZ

FXZ Risk / Return Rank: 66
FXZ Sharpe Ratio Rank: 64
FXZ Sortino Ratio Rank: 61
FXZ Omega Ratio Rank: 57
FXZ Calmar Ratio Rank: 74
FXZ Martin Ratio Rank: 73

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.

PSCM vs. FXZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Materials ETF (PSCM) and First Trust Materials AlphaDEX Fund (FXZ). 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.

	PSCM	FXZ	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.98	+0.24
Sortino ratio: Return per unit of downside risk	3.09	2.68	+0.41
Omega ratio: Gain probability vs. loss probability	1.35	1.33	+0.02
Calmar ratio: Return relative to maximum drawdown	3.78	3.53	+0.24
Martin ratio: Return relative to average drawdown	14.00	13.08	+0.92

PSCM vs. FXZ - Sharpe Ratio Comparison

The current PSCM Sharpe Ratio is 2.22, which is comparable to the FXZ Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of PSCM and FXZ, 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

PSCM vs. FXZ - Drawdown Comparison

The maximum PSCM drawdown since its inception was -51.34%, smaller than the maximum FXZ drawdown of -65.46%. Use the drawdown chart below to compare losses from any high point for PSCM and FXZ.

Drawdown Indicators

	PSCM	FXZ	Difference
Max Drawdown Largest peak-to-trough decline	-51.34%	-65.46%	+14.12%
Max Drawdown (1Y) Largest decline over 1 year	-14.33%	-12.75%	-1.58%
Max Drawdown (3Y) Largest decline over 3 years	-35.36%	-33.99%	-1.37%
Max Drawdown (5Y) Largest decline over 5 years	-35.36%	-33.99%	-1.37%
Max Drawdown (10Y) Largest decline over 10 years	-51.34%	-49.41%	-1.93%
Current Drawdown Current decline from peak	-4.64%	-5.23%	+0.59%
Average Drawdown Average peak-to-trough decline	-10.88%	-11.33%	+0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.86%	3.44%	+0.42%

Volatility

PSCM vs. FXZ - Volatility Comparison

Invesco S&P SmallCap Materials ETF (PSCM) and First Trust Materials AlphaDEX Fund (FXZ) have volatilities of 8.22% and 7.83%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCM	FXZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.22%	7.83%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	17.32%	17.24%	+0.08%
Volatility (1Y) Calculated over the trailing 1-year period	24.46%	22.77%	+1.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.83%	24.19%	+1.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.89%	24.93%	+1.96%

PSCM vs. FXZ - Expense Ratio Comparison

PSCM has a 0.29% expense ratio, which is lower than FXZ's 0.67% expense ratio.

Dividends

PSCM vs. FXZ - Dividend Comparison

PSCM's dividend yield for the trailing twelve months is around 0.97%, less than FXZ's 1.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.44%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
PSCM Invesco S&P SmallCap Materials ETF	0.97%	1.17%	0.80%	0.81%	0.93%	0.67%	1.56%	1.14%	1.25%	0.61%	0.76%	1.33%

Frequently Asked Questions

Can I hold both PSCM and FXZ in my portfolio?

PSCM and FXZ have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCM or FXZ?

PSCM has higher volatility (8.22%) compared to FXZ (7.83%). In terms of maximum drawdown, PSCM dropped -51.34% vs FXZ's -65.46%.

Which ETF is better, PSCM or FXZ?

On 10-year performance, PSCM leads with 12.85% vs 11.46% for FXZ. On fees, PSCM is cheaper at 0.29% per year. On volatility, FXZ has been the lower-risk option at 7.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCM or FXZ?

Over the 10-year period, PSCM has performed better with a 12.85% return vs 11.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCM or FXZ?

PSCM is cheaper with a 0.29% expense ratio, compared with 0.67% for FXZ.

Which ETF pays a higher dividend yield, PSCM or FXZ?

FXZ has the higher dividend yield at 1.44%, compared with 0.97% for PSCM.

What is the main difference between PSCM and FXZ?

PSCM tracks S&P Small Cap 600 / Materials -SEC, while FXZ tracks StrataQuant Materials Index. They also come from different issuers: Invesco and First Trust. Their fees differ too: 0.29% for PSCM and 0.67% for FXZ.

Which has better risk-adjusted returns?

PSCM currently has the higher Sharpe Ratio (2.22 vs 1.98), 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.