VDC vs. PSL

Last updated Jul 14, 2026

VDC (Vanguard Consumer Staples ETF) and PSL (Invesco DWA Consumer Staples Momentum ETF) are both exchange-traded funds - VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index, while PSL is a Momentum fund tracking the DWA Consumer Staples Technical Leaders Index. Both are passively managed. Over the past 10 years, VDC returned 7.47%/yr vs 8.11%/yr for PSL. A 0.78 correlation means they provide meaningful diversification when combined. VDC charges 0.09%/yr vs 0.60%/yr for PSL.

Performance

VDC vs. PSL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Consumer Staples ETF (VDC) and Invesco DWA Consumer Staples Momentum ETF (PSL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDC achieves a 9.72% return, which is significantly lower than PSL's 14.94% return. Over the past 10 years, VDC has underperformed PSL with an annualized return of 7.47%, while PSL has yielded a comparatively higher 8.11% annualized return.

VDC

• 1D: 0.50%
• 1M: -0.75%
• 6M: 6.09%
• YTD: 9.72%
• 1Y: 7.28%
• 3Y*: 8.12%
• 5Y*: 7.08%
• 10Y*: 7.47%

PSL

• 1D: 0.51%
• 1M: 1.42%
• 6M: 10.21%
• YTD: 14.94%
• 1Y: 6.13%
• 3Y*: 10.82%
• 5Y*: 5.95%
• 10Y*: 8.11%

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

VDC vs. PSL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDC Vanguard Consumer Staples ETF	9.72%	2.17%	13.30%	2.38%	-1.79%	17.64%	10.86%	26.11%	-7.79%	11.85%
PSL Invesco DWA Consumer Staples Momentum ETF	14.94%	-3.47%	15.42%	12.32%	-7.76%	6.88%	18.15%	14.16%	0.92%	21.82%

Correlation

The correlation between VDC and PSL is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Oct 12, 2006	0.78

The correlation between VDC and PSL has been stable across timeframes, ranging from 0.73 to 0.80 - a consistent structural relationship.

VDC vs. PSL - Sectors Allocation Comparison

Sectors	VDC	PSL
Consumer Defensive	97.2%	86.3%
Consumer Cyclical	1.1%	10.6%
Industrials	0.6%	1.4%
Technology	0.4%	-
Basic Materials	0.4%	-
Healthcare	0.0%	-
Communication Services	-	-
Energy	-	-
Financial Services	-	1.8%
Real Estate	-	-
Utilities	-	-

Return for Risk

VDC vs. PSL — Risk / Return Rank

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

VDC

VDC Risk / Return Rank: 20
VDC Sharpe Ratio Rank: 20
VDC Sortino Ratio Rank: 20
VDC Omega Ratio Rank: 18
VDC Calmar Ratio Rank: 22
VDC Martin Ratio Rank: 18

PSL

PSL Risk / Return Rank: 16
PSL Sharpe Ratio Rank: 18
PSL Sortino Ratio Rank: 17
PSL Omega Ratio Rank: 17
PSL Calmar Ratio Rank: 15
PSL Martin Ratio Rank: 15

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.

VDC vs. PSL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Staples ETF (VDC) and Invesco DWA Consumer Staples Momentum ETF (PSL). 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.

	VDC	PSL	Difference
Sharpe ratio: Return per unit of total volatility	0.56	0.47	+0.09
Sortino ratio: Return per unit of downside risk	0.90	0.72	+0.18
Omega ratio: Gain probability vs. loss probability	1.10	1.09	+0.01
Calmar ratio: Return relative to maximum drawdown	0.79	0.45	+0.34
Martin ratio: Return relative to average drawdown	1.52	0.99	+0.52

VDC vs. PSL - Sharpe Ratio Comparison

The current VDC Sharpe Ratio is 0.56, which is comparable to the PSL Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of VDC and PSL, 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

VDC vs. PSL - Drawdown Comparison

The maximum VDC drawdown since its inception was -34.24%, smaller than the maximum PSL drawdown of -41.58%. Use the drawdown chart below to compare losses from any high point for VDC and PSL.

Drawdown Indicators

	VDC	PSL	Difference
Max Drawdown Largest peak-to-trough decline	-34.24%	-41.58%	+7.34%
Max Drawdown (1Y) Largest decline over 1 year	-9.28%	-13.64%	+4.36%
Max Drawdown (3Y) Largest decline over 3 years	-11.78%	-13.64%	+1.86%
Max Drawdown (5Y) Largest decline over 5 years	-16.55%	-18.96%	+2.41%
Max Drawdown (10Y) Largest decline over 10 years	-25.31%	-34.67%	+9.36%
Current Drawdown Current decline from peak	-5.09%	-1.40%	-3.69%
Average Drawdown Average peak-to-trough decline	-3.74%	-5.80%	+2.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.81%	6.20%	-1.39%

Volatility

VDC vs. PSL - Volatility Comparison

Vanguard Consumer Staples ETF (VDC) has a higher volatility of 4.91% compared to Invesco DWA Consumer Staples Momentum ETF (PSL) at 3.93%. This indicates that VDC's price experiences larger fluctuations and is considered to be riskier than PSL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDC	PSL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.91%	3.93%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	10.64%	9.26%	+1.38%
Volatility (1Y) Calculated over the trailing 1-year period	13.11%	13.23%	-0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.29%	15.18%	-1.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.69%	16.51%	-1.82%

VDC vs. PSL - Expense Ratio Comparison

VDC has a 0.09% expense ratio, which is lower than PSL's 0.60% expense ratio.

Dividends

VDC vs. PSL - Dividend Comparison

VDC's dividend yield for the trailing twelve months is around 2.09%, more than PSL's 0.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSL Invesco DWA Consumer Staples Momentum ETF	0.73%	0.93%	0.60%	1.37%	1.98%	1.24%	0.80%	0.47%	0.75%	0.34%	2.08%	1.18%
VDC Vanguard Consumer Staples ETF	2.09%	2.26%	2.33%	2.65%	2.37%	2.14%	2.50%	2.44%	2.78%	2.52%	2.39%	2.55%

Frequently Asked Questions

Can I hold both VDC and PSL in my portfolio?

VDC and PSL have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDC or PSL?

VDC has higher volatility (4.91%) compared to PSL (3.93%). In terms of maximum drawdown, VDC dropped -34.24% vs PSL's -41.58%.

Which ETF is better, VDC or PSL?

On 10-year performance, PSL leads with 8.11% vs 7.47% for VDC. On fees, VDC is cheaper at 0.09% per year. On volatility, PSL has been the lower-risk option at 3.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDC or PSL?

Over the 10-year period, PSL has performed better with a 8.11% return vs 7.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDC or PSL?

VDC is cheaper with a 0.09% expense ratio, compared with 0.60% for PSL.

Which ETF pays a higher dividend yield, VDC or PSL?

VDC has the higher dividend yield at 2.09%, compared with 0.73% for PSL.

What is the main difference between VDC and PSL?

VDC is categorized as Consumer Staples Equities, while PSL is Momentum. VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index, while PSL tracks DWA Consumer Staples Technical Leaders Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VDC and 0.60% for PSL.

Which has better risk-adjusted returns?

VDC currently has the higher Sharpe Ratio (0.56 vs 0.47), 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.