PSCM vs. QQQ

Last updated Jun 24, 2026

PSCM (Invesco S&P SmallCap Materials ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - PSCM is a Materials fund tracking the S&P Small Cap 600 / Materials -SEC, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, PSCM returned 12.85%/yr vs 22.07%/yr for QQQ. At a 0.49 correlation, their price movements are largely independent. PSCM charges 0.29%/yr vs 0.18%/yr for QQQ.

Performance

PSCM vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Materials ETF (PSCM) 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, PSCM achieves a 23.80% return, which is significantly higher than QQQ's 16.45% return. Over the past 10 years, PSCM has underperformed QQQ with an annualized return of 12.85%, while QQQ has yielded a comparatively higher 22.07% 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%

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)

PSCM vs. QQQ - 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%
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 PSCM and QQQ is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.49

The correlation between PSCM and QQQ has been stable across timeframes, ranging from 0.45 to 0.53 - a consistent structural relationship.

PSCM vs. QQQ - Sectors Allocation Comparison

Sectors	PSCM	QQQ
Basic Materials	90.9%	1.0%
Energy	7.1%	0.5%
Consumer Cyclical	1.8%	11.4%
Financial Services	0.1%	0.2%
Communication Services	-	14.3%
Consumer Defensive	-	6.4%
Healthcare	-	3.7%
Industrials	-	2.6%
Real Estate	-	0.1%
Technology	-	58.7%
Utilities	-	1.2%

Return for Risk

PSCM vs. QQQ — 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

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.

PSCM vs. QQQ - Risk-Adjusted Trends Comparison

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

	PSCM	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.95	+0.26
Sortino ratio: Return per unit of downside risk	3.09	2.57	+0.52
Omega ratio: Gain probability vs. loss probability	1.35	1.35	+0.01
Calmar ratio: Return relative to maximum drawdown	3.78	2.93	+0.85
Martin ratio: Return relative to average drawdown	14.00	10.86	+3.13

PSCM vs. QQQ - Sharpe Ratio Comparison

The current PSCM Sharpe Ratio is 2.22, which is comparable to the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of PSCM 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

PSCM vs. QQQ - Drawdown Comparison

The maximum PSCM drawdown since its inception was -51.34%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for PSCM and QQQ.

Drawdown Indicators

	PSCM	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-51.34%	-82.97%	+31.63%
Max Drawdown (1Y) Largest decline over 1 year	-14.33%	-11.96%	-2.37%
Max Drawdown (3Y) Largest decline over 3 years	-35.36%	-22.77%	-12.59%
Max Drawdown (5Y) Largest decline over 5 years	-35.36%	-35.12%	-0.24%
Max Drawdown (10Y) Largest decline over 10 years	-51.34%	-35.12%	-16.22%
Current Drawdown Current decline from peak	-4.64%	-4.25%	-0.39%
Average Drawdown Average peak-to-trough decline	-10.88%	-32.73%	+21.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.86%	3.22%	+0.64%

Volatility

PSCM vs. QQQ - Volatility Comparison

The current volatility for Invesco S&P SmallCap Materials ETF (PSCM) is 8.22%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that PSCM 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

	PSCM	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.22%	9.17%	-0.95%
Volatility (6M) Calculated over the trailing 6-month period	17.32%	14.57%	+2.75%
Volatility (1Y) Calculated over the trailing 1-year period	24.46%	17.96%	+6.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.83%	22.69%	+3.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.89%	22.42%	+4.47%

PSCM vs. QQQ - Expense Ratio Comparison

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

Dividends

PSCM vs. QQQ - Dividend Comparison

PSCM's dividend yield for the trailing twelve months is around 0.97%, more than QQQ's 0.43% 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%
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 PSCM and QQQ in my portfolio?

PSCM and QQQ have a correlation of 0.45, 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 QQQ?

QQQ has higher volatility (9.17%) compared to PSCM (8.22%). In terms of maximum drawdown, PSCM dropped -51.34% vs QQQ's -82.97%.

Which ETF is better, PSCM or QQQ?

On 10-year performance, QQQ leads with 22.07% vs 12.85% for PSCM. On fees, QQQ is cheaper at 0.18% 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 QQQ?

Over the 10-year period, QQQ has performed better with a 22.07% return vs 12.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCM or QQQ?

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

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

PSCM has the higher dividend yield at 0.97%, compared with 0.43% for QQQ.

What is the main difference between PSCM and QQQ?

PSCM is categorized as Materials, while QQQ is Nasdaq-100. PSCM tracks S&P Small Cap 600 / Materials -SEC, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.29% for PSCM and 0.18% for QQQ.

Which has better risk-adjusted returns?

PSCM currently has the higher Sharpe Ratio (2.22 vs 1.95), 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.