PSCM vs. PYZ

Last updated Jun 24, 2026

PSCM (Invesco S&P SmallCap Materials ETF) and PYZ (Invesco DWA Basic Materials Momentum ETF) are both exchange-traded funds - PSCM is a Materials fund tracking the S&P Small Cap 600 / Materials -SEC, while PYZ is a Momentum fund tracking the Dorsey Wright Basic Materials Technical Leaders Index. Both are passively managed. Over the past 10 years, PSCM returned 12.85%/yr vs 10.24%/yr for PYZ. A 0.78 correlation means they provide meaningful diversification when combined. PSCM charges 0.29%/yr vs 0.60%/yr for PYZ.

Performance

PSCM vs. PYZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Materials ETF (PSCM) and Invesco DWA Basic Materials Momentum ETF (PYZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCM achieves a 23.80% return, which is significantly higher than PYZ's 14.78% return. Over the past 10 years, PSCM has outperformed PYZ with an annualized return of 12.85%, while PYZ has yielded a comparatively lower 10.24% 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%

PYZ

• 1D: -2.80%
• 1M: -0.19%
• YTD: 14.78%
• 6M: 11.00%
• 1Y: 37.65%
• 3Y*: 16.95%
• 5Y*: 8.30%
• 10Y*: 10.24%

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

PSCM vs. PYZ - 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%
PYZ Invesco DWA Basic Materials Momentum ETF	14.78%	28.01%	2.54%	9.56%	-15.45%	32.68%	15.39%	20.66%	-24.33%	20.01%

Correlation

The correlation between PSCM and PYZ is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.78

The correlation between PSCM and PYZ has been stable across timeframes, ranging from 0.78 to 0.88 - a consistent structural relationship.

PSCM vs. PYZ - Sectors Allocation Comparison

Sectors	PSCM	PYZ
Basic Materials	90.9%	85.4%
Energy	7.1%	3.8%
Consumer Cyclical	1.8%	4.2%
Financial Services	0.1%	0.3%
Communication Services	-	-
Consumer Defensive	-	0.6%
Healthcare	-	-
Industrials	-	14.3%
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PSCM vs. PYZ — 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

PYZ

PYZ Risk / Return Rank: 43
PYZ Sharpe Ratio Rank: 43
PYZ Sortino Ratio Rank: 42
PYZ Omega Ratio Rank: 40
PYZ Calmar Ratio Rank: 46
PYZ 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.

PSCM vs. PYZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Materials ETF (PSCM) and Invesco DWA Basic Materials Momentum ETF (PYZ). 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	PYZ	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.43	+0.79
Sortino ratio: Return per unit of downside risk	3.09	1.98	+1.11
Omega ratio: Gain probability vs. loss probability	1.35	1.25	+0.10
Calmar ratio: Return relative to maximum drawdown	3.78	2.13	+1.64
Martin ratio: Return relative to average drawdown	14.00	6.94	+7.06

PSCM vs. PYZ - Sharpe Ratio Comparison

The current PSCM Sharpe Ratio is 2.22, which is higher than the PYZ Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of PSCM and PYZ, 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. PYZ - Drawdown Comparison

The maximum PSCM drawdown since its inception was -51.34%, smaller than the maximum PYZ drawdown of -65.15%. Use the drawdown chart below to compare losses from any high point for PSCM and PYZ.

Drawdown Indicators

	PSCM	PYZ	Difference
Max Drawdown Largest peak-to-trough decline	-51.34%	-65.15%	+13.81%
Max Drawdown (1Y) Largest decline over 1 year	-14.33%	-17.75%	+3.42%
Max Drawdown (3Y) Largest decline over 3 years	-35.36%	-26.74%	-8.62%
Max Drawdown (5Y) Largest decline over 5 years	-35.36%	-32.97%	-2.39%
Max Drawdown (10Y) Largest decline over 10 years	-51.34%	-52.46%	+1.12%
Current Drawdown Current decline from peak	-4.64%	-5.41%	+0.77%
Average Drawdown Average peak-to-trough decline	-10.88%	-12.61%	+1.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.86%	5.44%	-1.58%

Volatility

PSCM vs. PYZ - Volatility Comparison

Invesco S&P SmallCap Materials ETF (PSCM) and Invesco DWA Basic Materials Momentum ETF (PYZ) have volatilities of 8.22% and 8.54%, 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	PYZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.22%	8.54%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	17.32%	20.88%	-3.56%
Volatility (1Y) Calculated over the trailing 1-year period	24.46%	26.51%	-2.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.83%	25.76%	+0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.89%	26.48%	+0.41%

PSCM vs. PYZ - Expense Ratio Comparison

PSCM has a 0.29% expense ratio, which is lower than PYZ's 0.60% expense ratio.

Dividends

PSCM vs. PYZ - Dividend Comparison

PSCM's dividend yield for the trailing twelve months is around 0.97%, more than PYZ's 0.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
PYZ Invesco DWA Basic Materials Momentum ETF	0.47%	0.72%	1.13%	1.19%	1.18%	0.33%	1.04%	1.38%	1.20%	0.53%	1.07%	1.25%

Frequently Asked Questions

Can I hold both PSCM and PYZ in my portfolio?

PSCM and PYZ have a correlation of 0.82, 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 PYZ?

PYZ has higher volatility (8.54%) compared to PSCM (8.22%). In terms of maximum drawdown, PSCM dropped -51.34% vs PYZ's -65.15%.

Which ETF is better, PSCM or PYZ?

On 10-year performance, PSCM leads with 12.85% vs 10.24% for PYZ. On fees, PSCM is cheaper at 0.29% per year. On volatility, PSCM has been the lower-risk option at 8.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCM or PYZ?

Over the 10-year period, PSCM has performed better with a 12.85% return vs 10.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCM or PYZ?

PSCM is cheaper with a 0.29% expense ratio, compared with 0.60% for PYZ.

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

PSCM has the higher dividend yield at 0.97%, compared with 0.47% for PYZ.

What is the main difference between PSCM and PYZ?

PSCM is categorized as Materials, while PYZ is Momentum. PSCM tracks S&P Small Cap 600 / Materials -SEC, while PYZ tracks Dorsey Wright Basic Materials Technical Leaders Index. Their fees differ too: 0.29% for PSCM and 0.60% for PYZ.

Which has better risk-adjusted returns?

PSCM currently has the higher Sharpe Ratio (2.22 vs 1.43), 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.