PSCT vs. XSW

Last updated Jun 24, 2026

PSCT (Invesco S&P SmallCap Information Technology ETF) and XSW (SPDR S&P Software & Services ETF) are both Technology Equities funds - PSCT tracks the S&P SmallCap 600 Information Technology Index while XSW tracks the S&P Software & Services Select Industry Index. Both are passively managed. Over the past 10 years, PSCT returned 16.76%/yr vs 12.80%/yr for XSW. A 0.78 correlation means they provide meaningful diversification when combined. PSCT charges 0.29%/yr vs 0.35%/yr for XSW.

Performance

PSCT vs. XSW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Information Technology ETF (PSCT) and SPDR S&P Software & Services ETF (XSW). 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 XSW's -13.68% return. Over the past 10 years, PSCT has outperformed XSW with an annualized return of 16.76%, while XSW has yielded a comparatively lower 12.80% 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%

XSW

• 1D: 0.86%
• 1M: -2.12%
• YTD: -13.68%
• 6M: -15.49%
• 1Y: -10.86%
• 3Y*: 8.06%
• 5Y*: -1.20%
• 10Y*: 12.80%

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

PSCT vs. XSW - 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%
XSW SPDR S&P Software & Services ETF	-13.68%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%

Correlation

The correlation between PSCT and XSW is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.78

The correlation between PSCT and XSW shifts across timeframes, from 0.59 (1 year) to 0.79 (10 years), reflecting how their relationship changes across market environments.

PSCT vs. XSW - Sectors Allocation Comparison

Sectors	PSCT	XSW
Technology	86.5%	85.9%
Industrials	5.3%	0.6%
Energy	3.7%	-
Financial Services	3.5%	9.0%
Basic Materials	-	-
Communication Services	-	2.7%
Consumer Cyclical	-	1.1%
Consumer Defensive	-	-
Healthcare	-	0.8%
Real Estate	-	-
Utilities	-	-

Return for Risk

PSCT vs. XSW — 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

XSW

XSW Risk / Return Rank: 6
XSW Sharpe Ratio Rank: 6
XSW Sortino Ratio Rank: 6
XSW Omega Ratio Rank: 6
XSW Calmar Ratio Rank: 6
XSW Martin Ratio Rank: 6

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. XSW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Information Technology ETF (PSCT) and SPDR S&P Software & Services ETF (XSW). 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	XSW	Difference
Sharpe ratio: Return per unit of total volatility	2.83	-0.38	+3.21
Sortino ratio: Return per unit of downside risk	3.32	-0.34	+3.67
Omega ratio: Gain probability vs. loss probability	1.43	0.96	+0.47
Calmar ratio: Return relative to maximum drawdown	6.05	-0.32	+6.37
Martin ratio: Return relative to average drawdown	24.56	-0.67	+25.23

PSCT vs. XSW - Sharpe Ratio Comparison

The current PSCT Sharpe Ratio is 2.83, which is higher than the XSW Sharpe Ratio of -0.38. The chart below compares the historical Sharpe Ratios of PSCT and XSW, 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. XSW - Drawdown Comparison

The maximum PSCT drawdown since its inception was -40.44%, smaller than the maximum XSW drawdown of -45.38%. Use the drawdown chart below to compare losses from any high point for PSCT and XSW.

Drawdown Indicators

	PSCT	XSW	Difference
Max Drawdown Largest peak-to-trough decline	-40.44%	-45.38%	+4.94%
Max Drawdown (1Y) Largest decline over 1 year	-14.80%	-33.75%	+18.95%
Max Drawdown (3Y) Largest decline over 3 years	-33.96%	-33.75%	-0.21%
Max Drawdown (5Y) Largest decline over 5 years	-34.80%	-45.38%	+10.58%
Max Drawdown (10Y) Largest decline over 10 years	-40.44%	-45.38%	+4.94%
Current Drawdown Current decline from peak	-4.02%	-21.30%	+17.28%
Average Drawdown Average peak-to-trough decline	-7.89%	-9.86%	+1.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.64%	16.31%	-12.67%

Volatility

PSCT vs. XSW - Volatility Comparison

Invesco S&P SmallCap Information Technology ETF (PSCT) has a higher volatility of 13.89% compared to SPDR S&P Software & Services ETF (XSW) at 11.42%. This indicates that PSCT's price experiences larger fluctuations and is considered to be riskier than XSW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSCT	XSW	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.89%	11.42%	+2.47%
Volatility (6M) Calculated over the trailing 6-month period	23.58%	23.81%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	31.64%	28.83%	+2.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.15%	28.89%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.88%	26.26%	+0.62%

PSCT vs. XSW - Expense Ratio Comparison

PSCT has a 0.29% expense ratio, which is lower than XSW's 0.35% expense ratio.

Dividends

PSCT vs. XSW - Dividend Comparison

Neither PSCT nor XSW has paid dividends to shareholders.

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%
XSW SPDR S&P Software & Services ETF	0.00%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both PSCT and XSW in my portfolio?

PSCT and XSW have a correlation of 0.59, 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 XSW?

PSCT has higher volatility (13.89%) compared to XSW (11.42%). In terms of maximum drawdown, PSCT dropped -40.44% vs XSW's -45.38%.

Which ETF is better, PSCT or XSW?

On 10-year performance, PSCT leads with 16.76% vs 12.80% for XSW. On fees, PSCT is cheaper at 0.29% per year. On volatility, XSW has been the lower-risk option at 11.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSCT or XSW?

Over the 10-year period, PSCT has performed better with a 16.76% return vs 12.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSCT or XSW?

PSCT is cheaper with a 0.29% expense ratio, compared with 0.35% for XSW.

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

PSCT and XSW have nearly identical dividend yields, around 0.00%.

What is the main difference between PSCT and XSW?

PSCT tracks S&P SmallCap 600 Information Technology Index, while XSW tracks S&P Software & Services Select Industry Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.29% for PSCT and 0.35% for XSW.

Which has better risk-adjusted returns?

PSCT currently has the higher Sharpe Ratio (2.83 vs -0.38), 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.