PSCM vs. VAW

Last updated Jun 24, 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 12.85%/yr vs 10.46%/yr for VAW. A 0.74 correlation means they provide meaningful diversification when combined. 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 23.80% return, which is significantly higher than VAW's 11.07% return. Over the past 10 years, PSCM has outperformed VAW with an annualized return of 12.85%, while VAW has yielded a comparatively lower 10.46% 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%

VAW

• 1D: -1.83%
• 1M: 0.83%
• YTD: 11.07%
• 6M: 9.68%
• 1Y: 20.68%
• 3Y*: 11.22%
• 5Y*: 6.68%
• 10Y*: 10.46%

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

PSCM vs. VAW - 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%
VAW Vanguard Materials ETF	11.07%	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 0.82, 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	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	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 0.86 (5 years), reflecting how their relationship changes across market environments.

PSCM vs. VAW - Sectors Allocation Comparison

Sectors	PSCM	VAW
Basic Materials	90.9%	90.1%
Energy	7.1%	0.0%
Consumer Cyclical	1.8%	8.3%
Financial Services	0.1%	-
Communication Services	-	-
Consumer Defensive	-	0.0%
Healthcare	-	0.5%
Industrials	-	1.1%
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

PSCM vs. VAW — 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

VAW

VAW Risk / Return Rank: 32
VAW Sharpe Ratio Rank: 32
VAW Sortino Ratio Rank: 32
VAW Omega Ratio Rank: 30
VAW Calmar Ratio Rank: 32
VAW Martin Ratio Rank: 34

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. 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	2.22	1.13	+1.09
Sortino ratio: Return per unit of downside risk	3.09	1.65	+1.44
Omega ratio: Gain probability vs. loss probability	1.35	1.20	+0.15
Calmar ratio: Return relative to maximum drawdown	3.78	1.55	+2.23
Martin ratio: Return relative to average drawdown	14.00	4.90	+9.10

PSCM vs. VAW - Sharpe Ratio Comparison

The current PSCM Sharpe Ratio is 2.22, which is higher than the VAW Sharpe Ratio of 1.13. 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	-4.64%	-5.58%	+0.94%
Average Drawdown Average peak-to-trough decline	-10.88%	-9.62%	-1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.86%	4.23%	-0.37%

Volatility

PSCM vs. VAW - Volatility Comparison

Invesco S&P SmallCap Materials ETF (PSCM) has a higher volatility of 8.22% compared to Vanguard Materials ETF (VAW) at 6.78%. This indicates that PSCM's price experiences larger fluctuations and is considered to be riskier than VAW based on this measure. 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	8.22%	6.78%	+1.44%
Volatility (6M) Calculated over the trailing 6-month period	17.32%	14.86%	+2.46%
Volatility (1Y) Calculated over the trailing 1-year period	24.46%	18.50%	+5.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.83%	19.72%	+6.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.89%	21.23%	+5.66%

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 0.97%, less than VAW's 1.39% 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%
VAW Vanguard Materials ETF	1.39%	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 0.82, 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 VAW?

PSCM has higher volatility (8.22%) compared to VAW (6.78%). 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 12.85% vs 10.46% for VAW. On fees, VAW is cheaper at 0.09% per year. On volatility, VAW has been the lower-risk option at 6.78%. 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 12.85% return vs 10.46%. 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 1.39%, compared with 0.97% 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 (2.22 vs 1.13), 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.