PSCT vs. XLK

Last updated Jun 24, 2026

PSCT (Invesco S&P SmallCap Information Technology ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - PSCT tracks the S&P SmallCap 600 Information Technology Index while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, PSCT returned 16.76%/yr vs 25.48%/yr for XLK. A 0.77 correlation means they provide meaningful diversification when combined. PSCT charges 0.29%/yr vs 0.08%/yr for XLK.

Performance

PSCT vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Information Technology ETF (PSCT) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSCT achieves a 49.75% return, which is significantly higher than XLK's 28.25% return. Over the past 10 years, PSCT has underperformed XLK with an annualized return of 16.76%, while XLK has yielded a comparatively higher 25.48% annualized return.

PSCT

• 1D: -2.98%
• 1M: 1.89%
• YTD: 49.75%
• 6M: 45.37%
• 1Y: 89.11%
• 3Y*: 22.35%
• 5Y*: 12.33%
• 10Y*: 16.76%

XLK

• 1D: -4.14%
• 1M: 2.23%
• YTD: 28.25%
• 6M: 26.51%
• 1Y: 52.47%
• 3Y*: 30.61%
• 5Y*: 21.34%
• 10Y*: 25.48%

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

PSCT vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSCT Invesco S&P SmallCap Information Technology ETF	49.75%	18.63%	-1.06%	20.81%	-22.50%	26.26%	27.79%	39.38%	-9.34%	9.96%
XLK State Street Technology Select Sector SPDR ETF	28.25%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between PSCT and XLK is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Apr 7, 2010	0.77

The correlation between PSCT and XLK has been stable across timeframes, ranging from 0.76 to 0.79 - a consistent structural relationship.

PSCT vs. XLK - Sectors Allocation Comparison

Sectors	PSCT	XLK
Technology	86.5%	99.7%
Industrials	5.3%	0.1%
Energy	3.7%	0.2%
Financial Services	3.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PSCT vs. XLK — Risk / Return Rank

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

PSCT

PSCT Risk / Return Rank: 86
PSCT Sharpe Ratio Rank: 89
PSCT Sortino Ratio Rank: 80
PSCT Omega Ratio Rank: 77
PSCT Calmar Ratio Rank: 92
PSCT Martin Ratio Rank: 94

XLK

XLK Risk / Return Rank: 66
XLK Sharpe Ratio Rank: 73
XLK Sortino Ratio Rank: 61
XLK Omega Ratio Rank: 64
XLK Calmar Ratio Rank: 68
XLK Martin Ratio Rank: 61

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.

PSCT vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Information Technology ETF (PSCT) and State Street Technology Select Sector SPDR ETF (XLK). 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.

	PSCT	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.83	2.25	+0.58
Sortino ratio: Return per unit of downside risk	3.32	2.77	+0.55
Omega ratio: Gain probability vs. loss probability	1.43	1.38	+0.05
Calmar ratio: Return relative to maximum drawdown	6.05	3.31	+2.74
Martin ratio: Return relative to average drawdown	24.56	10.56	+14.00

PSCT vs. XLK - Sharpe Ratio Comparison

The current PSCT Sharpe Ratio is 2.83, which is comparable to the XLK Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of PSCT and XLK, 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

PSCT vs. XLK - Drawdown Comparison

The maximum PSCT drawdown since its inception was -40.44%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for PSCT and XLK.

Drawdown Indicators

	PSCT	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-40.44%	-82.05%	+41.61%
Max Drawdown (1Y) Largest decline over 1 year	-14.80%	-15.92%	+1.12%
Max Drawdown (3Y) Largest decline over 3 years	-33.96%	-25.66%	-8.30%
Max Drawdown (5Y) Largest decline over 5 years	-34.80%	-33.56%	-1.24%
Max Drawdown (10Y) Largest decline over 10 years	-40.44%	-33.56%	-6.88%
Current Drawdown Current decline from peak	-4.02%	-6.96%	+2.94%
Average Drawdown Average peak-to-trough decline	-7.89%	-34.90%	+27.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.64%	4.98%	-1.34%

Volatility

PSCT vs. XLK - Volatility Comparison

Invesco S&P SmallCap Information Technology ETF (PSCT) has a higher volatility of 13.89% compared to State Street Technology Select Sector SPDR ETF (XLK) at 12.51%. This indicates that PSCT's price experiences larger fluctuations and is considered to be riskier than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCT	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.89%	12.51%	+1.38%
Volatility (6M) Calculated over the trailing 6-month period	23.58%	19.70%	+3.88%
Volatility (1Y) Calculated over the trailing 1-year period	31.64%	23.48%	+8.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.15%	25.37%	+2.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.88%	24.71%	+2.17%

PSCT vs. XLK - Expense Ratio Comparison

PSCT has a 0.29% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

PSCT vs. XLK - Dividend Comparison

PSCT has not paid dividends to shareholders, while XLK's dividend yield for the trailing twelve months is around 0.43%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSCT Invesco S&P SmallCap Information Technology ETF	0.00%	0.02%	0.01%	0.02%	0.00%	0.01%	0.08%	0.22%	0.47%	0.19%	0.25%	0.15%
XLK State Street Technology Select Sector SPDR ETF	0.43%	0.54%	0.66%	0.76%	1.04%	0.65%	0.92%	1.16%	1.60%	1.37%	1.74%	1.79%

Frequently Asked Questions

Can I hold both PSCT and XLK in my portfolio?

PSCT and XLK have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSCT or XLK?

PSCT has higher volatility (13.89%) compared to XLK (12.51%). In terms of maximum drawdown, PSCT dropped -40.44% vs XLK's -82.05%.

Which ETF is better, PSCT or XLK?

On 10-year performance, XLK leads with 25.48% vs 16.76% for PSCT. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 12.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCT or XLK?

Over the 10-year period, XLK has performed better with a 25.48% return vs 16.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCT or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.29% for PSCT.

Which ETF pays a higher dividend yield, PSCT or XLK?

XLK has the higher dividend yield at 0.43%, compared with 0.00% for PSCT.

What is the main difference between PSCT and XLK?

PSCT tracks S&P SmallCap 600 Information Technology Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCT and 0.08% for XLK.

Which has better risk-adjusted returns?

PSCT currently has the higher Sharpe Ratio (2.83 vs 2.25), 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.