PSCM vs. VAW

Last updated Aug 2, 2026

PSCM (Invesco S&P SmallCap Materials ETF) and VAW (Vanguard Materials ETF) are both Materials funds - PSCM tracks the S&P Small Cap 600 / Materials -SEC while VAW tracks the MSCI US Investable Market Materials 25/50 Index. Both are passively managed. Over the past 10 years, PSCM returned 10.88%/yr vs 9.56%/yr for VAW. Their 0.74 correlation means they have sometimes moved together and sometimes differently. PSCM charges 0.29%/yr vs 0.09%/yr for VAW.

Performance

PSCM vs. VAW - Performance Comparison

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

Returns By Period

In the year-to-date period, PSCM achieves a 15.02% return, which is significantly higher than VAW's 8.16% return. Over the past 10 years, PSCM has outperformed VAW with an annualized return of 10.88%, while VAW has yielded a comparatively lower 9.56% annualized return.

PSCM

• 1D: 0.39%
• 1M: -4.92%
• 6M: 5.05%
• YTD: 15.02%
• 1Y: 36.37%
• 3Y*: 11.08%
• 5Y*: 9.38%
• 10Y*: 10.88%
• ALL TIME*: 9.52%

VAW

• 1D: -2.38%
• 1M: -4.20%
• 6M: -0.26%
• YTD: 8.16%
• 1Y: 17.08%
• 3Y*: 7.54%
• 5Y*: 5.77%
• 10Y*: 9.56%
• ALL TIME*: 9.02%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PSCM Invesco S&P SmallCap Materials ETF	$171.19K	$253.44K	$274.93K
VAW Vanguard Materials ETF	$9.35M	$9.71M	$12.39M

PSCM vs. VAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCM Invesco S&P SmallCap Materials ETF	15.02%	15.59%	0.67%	19.86%	-6.45%	18.02%	22.18%	21.75%	-23.28%	10.37%
VAW Vanguard Materials ETF	8.16%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%

Correlation

The correlation between PSCM and VAW is 0.79, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.79
Correlation (3Y) Balances recent behavior with more history.	0.82
Correlation (5Y) Shows whether the relationship held over a longer period.	0.85
Correlation (10Y) Provides a long-term view across more market conditions.	0.80
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.74

The correlation between PSCM and VAW shifts across timeframes, from 0.74 (all time) to 0.85 (5 years), reflecting how their relationship changes across market environments.

PSCM vs. VAW - Sectors Allocation Comparison

Sectors	PSCM	VAW
Basic Materials	91.8%	89.3%
Energy	6.2%	0.0%
Consumer Cyclical	2.0%	9.5%
Financial Services	0.1%	-
Communication Services	-	-
Consumer Defensive	-	0.0%
Healthcare	-	0.5%
Industrials	-	0.6%
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

PSCM vs. VAW — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PSCM

PSCM Risk / Return Rank: 61
PSCM Sharpe Ratio Rank: 61
PSCM Sortino Ratio Rank: 63
PSCM Omega Ratio Rank: 54
PSCM Calmar Ratio Rank: 69
PSCM Martin Ratio Rank: 60

VAW

VAW Risk / Return Rank: 35
VAW Sharpe Ratio Rank: 35
VAW Sortino Ratio Rank: 35
VAW Omega Ratio Rank: 33
VAW Calmar Ratio Rank: 35
VAW Martin Ratio Rank: 35

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PSCM vs. VAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Materials ETF (PSCM) and Vanguard Materials ETF (VAW). 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	VAW	Difference
Sharpe ratio: Return per unit of total volatility	1.44	0.87	+0.57
Sortino ratio: Return per unit of downside risk	2.12	1.31	+0.81
Omega ratio: Gain probability vs. loss probability	1.24	1.16	+0.09
Calmar ratio: Return relative to maximum drawdown	2.41	1.21	+1.20
Martin ratio: Return relative to average drawdown	7.19	3.47	+3.72

PSCM vs. VAW - Sharpe Ratio Comparison

The current PSCM Sharpe Ratio is 1.44, which is higher than the VAW Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of PSCM and VAW, 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. VAW - Drawdown Comparison

The maximum PSCM drawdown since its inception was -51.34%, smaller than the maximum VAW drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for PSCM and VAW.

Drawdown Indicators

	PSCM	VAW	Difference
Max Drawdown Largest peak-to-trough decline	-51.34%	-62.17%	+10.83%
Max Drawdown (1Y) Largest decline over 1 year	-14.33%	-13.42%	-0.91%
Max Drawdown (3Y) Largest decline over 3 years	-35.36%	-23.21%	-12.15%
Max Drawdown (5Y) Largest decline over 5 years	-35.36%	-25.50%	-9.86%
Max Drawdown (10Y) Largest decline over 10 years	-51.34%	-41.13%	-10.21%
Current Drawdown Current decline from peak	-11.41%	-8.05%	-3.36%
Average Drawdown Average peak-to-trough decline	-10.86%	-9.60%	-1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.79%	4.65%	+0.14%

Volatility

PSCM vs. VAW - Volatility Comparison

Invesco S&P SmallCap Materials ETF (PSCM) and Vanguard Materials ETF (VAW) have volatilities of 5.30% and 5.54%, 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	VAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.30%	5.54%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	17.60%	15.14%	+2.46%
Volatility (1Y) Calculated over the trailing 1-year period	23.96%	18.68%	+5.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.73%	19.75%	+5.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.82%	21.22%	+5.60%

PSCM vs. VAW - Expense Ratio Comparison

PSCM has a 0.29% expense ratio, which is higher than VAW's 0.09% expense ratio.

Dividends

PSCM vs. VAW - Dividend Comparison

PSCM's dividend yield for the trailing twelve months is around 1.04%, less than VAW's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCM Invesco S&P SmallCap Materials ETF	1.04%	1.17%	0.80%	0.81%	0.93%	0.67%	1.56%	1.14%	1.25%	0.61%	0.76%	1.33%
VAW Vanguard Materials ETF	1.42%	1.55%	1.70%	1.72%	1.98%	1.44%	1.67%	1.94%	2.03%	1.63%	1.67%	2.30%

Frequently Asked Questions

Can I hold both PSCM and VAW in my portfolio?

PSCM and VAW have a correlation of 0.79, 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 VAW?

VAW has higher volatility (5.54%) compared to PSCM (5.30%). In terms of maximum drawdown, PSCM dropped -51.34% vs VAW's -62.17%.

Which ETF is better, PSCM or VAW?

On 10-year performance, PSCM leads with 10.88% vs 9.56% for VAW. On fees, VAW is cheaper at 0.09% per year. On volatility, PSCM has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCM or VAW?

Over the 10-year period, PSCM has performed better with a 10.88% return vs 9.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCM or VAW?

VAW is cheaper with a 0.09% expense ratio, compared with 0.29% for PSCM.

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

VAW has the higher dividend yield at 1.42%, compared with 1.04% for PSCM.

What is the main difference between PSCM and VAW?

PSCM tracks S&P Small Cap 600 / Materials -SEC, while VAW tracks MSCI US Investable Market Materials 25/50 Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.29% for PSCM and 0.09% for VAW.

Which has better risk-adjusted returns?

PSCM currently has the higher Sharpe Ratio (1.44 vs 0.87), 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.