PSCM vs. QQQM

Last updated Jun 5, 2026

PSCM (Invesco S&P SmallCap Materials ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - PSCM is a Materials fund tracking the S&P Small Cap 600 / Materials -SEC, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, PSCM returned 9.87%/yr vs 17.94%/yr for QQQM. At a 0.49 correlation, their price movements are largely independent. PSCM charges 0.29%/yr vs 0.15%/yr for QQQM.

Performance

PSCM vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Materials ETF (PSCM) and Invesco NASDAQ 100 ETF (QQQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCM achieves a 25.13% return, which is significantly higher than QQQM's 20.73% return.

PSCM

• 1D: -0.91%
• 1M: -3.62%
• YTD: 25.13%
• 6M: 30.92%
• 1Y: 58.25%
• 3Y*: 18.48%
• 5Y*: 9.87%
• 10Y*: 12.55%

QQQM

• 1D: -0.54%
• 1M: 8.67%
• YTD: 20.73%
• 6M: 19.22%
• 1Y: 40.83%
• 3Y*: 28.64%
• 5Y*: 17.94%
• 10Y*: —

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

PSCM vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PSCM Invesco S&P SmallCap Materials ETF	25.13%	15.59%	0.67%	19.86%	-6.45%	18.02%	33.97%
QQQM Invesco NASDAQ 100 ETF	20.73%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.67%

Correlation

The correlation between PSCM and QQQM 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	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Oct 14, 2020	0.49

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

PSCM vs. QQQM - Sectors Allocation Comparison

Sectors	PSCM	QQQM
Basic Materials	91.2%	1.1%
Energy	7.0%	0.6%
Consumer Cyclical	1.8%	12.3%
Financial Services	0.1%	0.2%
Communication Services	-	15.8%
Consumer Defensive	-	7.7%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

PSCM vs. QQQM — Risk / Return Rank

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

PSCM

PSCM Risk / Return Rank: 76
PSCM Sharpe Ratio Rank: 77
PSCM Sortino Ratio Rank: 77
PSCM Omega Ratio Rank: 65
PSCM Calmar Ratio Rank: 80
PSCM Martin Ratio Rank: 80

QQQM

QQQM Risk / Return Rank: 75
QQQM Sharpe Ratio Rank: 81
QQQM Sortino Ratio Rank: 76
QQQM Omega Ratio Rank: 75
QQQM Calmar Ratio Rank: 70
QQQM Martin Ratio Rank: 71

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. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Materials ETF (PSCM) and Invesco NASDAQ 100 ETF (QQQM). 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.

	PSCM	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	2.44	2.58	-0.14
Sortino ratio: Return per unit of downside risk	3.37	3.38	-0.01
Omega ratio: Gain probability vs. loss probability	1.38	1.44	-0.06
Calmar ratio: Return relative to maximum drawdown	4.09	3.43	+0.66
Martin ratio: Return relative to average drawdown	15.44	13.15	+2.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSCM vs. QQQM - Sharpe Ratio Comparison

The current PSCM Sharpe Ratio is 2.44, which is comparable to the QQQM Sharpe Ratio of 2.58. The chart below compares the historical Sharpe Ratios of PSCM and QQQM, 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

	PSCM	QQQM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.44	2.58	-0.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	0.81	-0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.84	-0.45

Drawdowns

PSCM vs. QQQM - Drawdown Comparison

The maximum PSCM drawdown since its inception was -51.34%, which is greater than QQQM's maximum drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for PSCM and QQQM.

Drawdown Indicators

	PSCM	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-51.34%	-35.04%	-16.30%
Max Drawdown (1Y) Largest decline over 1 year	-14.33%	-11.96%	-2.37%
Max Drawdown (3Y) Largest decline over 3 years	-35.36%	-22.70%	-12.66%
Max Drawdown (5Y) Largest decline over 5 years	-35.36%	-35.04%	-0.32%
Max Drawdown (10Y) Largest decline over 10 years	-51.34%	—	—
Current Drawdown Current decline from peak	-3.62%	-0.75%	-2.87%
Average Drawdown Average peak-to-trough decline	-10.90%	-8.24%	-2.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.78%	3.11%	+0.67%

Volatility

PSCM vs. QQQM - Volatility Comparison

Invesco S&P SmallCap Materials ETF (PSCM) has a higher volatility of 7.42% compared to Invesco NASDAQ 100 ETF (QQQM) at 4.51%. This indicates that PSCM's price experiences larger fluctuations and is considered to be riskier than QQQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCM	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.42%	4.51%	+2.91%
Volatility (6M) Calculated over the trailing 6-month period	16.88%	12.06%	+4.82%
Volatility (1Y) Calculated over the trailing 1-year period	24.00%	15.91%	+8.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.74%	22.23%	+3.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.91%	22.11%	+4.80%

PSCM vs. QQQM - Expense Ratio Comparison

PSCM has a 0.29% expense ratio, which is higher than QQQM's 0.15% expense ratio.

Dividends

PSCM vs. QQQM - Dividend Comparison

PSCM's dividend yield for the trailing twelve months is around 1.03%, more than QQQM's 0.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCM Invesco S&P SmallCap Materials ETF	1.03%	1.17%	0.80%	0.81%	0.93%	0.67%	1.56%	1.14%	1.25%	0.61%	0.76%	1.33%
QQQM Invesco NASDAQ 100 ETF	0.42%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSCM and QQQM in my portfolio?

PSCM and QQQM 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 QQQM?

PSCM has higher volatility (7.42%) compared to QQQM (4.51%). In terms of maximum drawdown, PSCM dropped -51.34% vs QQQM's -35.04%.

Which ETF is better, PSCM or QQQM?

On 5-year performance, QQQM leads with 17.94% vs 9.87% for PSCM. On fees, QQQM is cheaper at 0.15% per year. On volatility, QQQM has been the lower-risk option at 4.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCM or QQQM?

Over the 5-year period, QQQM has performed better with a 17.94% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCM or QQQM?

QQQM is cheaper with a 0.15% expense ratio, compared with 0.29% for PSCM.

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

PSCM has the higher dividend yield at 1.03%, compared with 0.42% for QQQM.

What is the main difference between PSCM and QQQM?

PSCM is categorized as Materials, while QQQM is Nasdaq-100. PSCM tracks S&P Small Cap 600 / Materials -SEC, while QQQM tracks NASDAQ-100 Index. Their fees differ too: 0.29% for PSCM and 0.15% for QQQM.

Which has better risk-adjusted returns?

QQQM currently has the higher Sharpe Ratio (2.58 vs 2.44), 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.