PSCH vs QQQ
Invesco S&P SmallCap Health Care ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PSCH delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PSCH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $183M | $496.3B | |
| Dividend Yield | 0.01% | 0.44% | |
| Holdings | 80 | 108 | |
| YTD Return | +26.03% | +17.30% | |
| 1Y Return | +38.12% | +24.93% | |
| 3Y Return (annualized) | +10.77% | +26.19% | |
| 5Y Return (annualized) | -1.58% | +15.34% | |
| Volatility (annualized) | 19.7% | 30.6% | |
| Max Drawdown | -46.3% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2010 | Mar 10, 1999 |
PSCH vs QQQ Performance
Invesco S&P SmallCap Health Care ETF (PSCH) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSCH returned +38.12% while QQQ returned +24.93%. Year to date, PSCH is up 26.03% versus a gain of 17.30% for QQQ.
Over three years, PSCH compounded at +10.77% per year against +26.19% for QQQ; over five years the annualized figures are -1.58% and +15.34% respectively. Across the full 16-year window we track, QQQ has the edge at +13.06% annualized vs +12.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.7% for PSCH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -46.3% for PSCH and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSCH charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, PSCH currently yields 0.01% against 0.44% for QQQ.
Holdings Overlap
PSCH and QQQ share 0 holdings out of 179 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSCH or QQQ?
PSCH has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, PSCH or QQQ?
Over the past year PSCH returned +38.12% vs +24.93% for QQQ, so PSCH leads on 1-year performance. Over the longest common window we track (16 years), PSCH annualized +12.39% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSCH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for PSCH. Worst drawdown: PSCH -46.3% vs QQQ -83.0%.
Should I hold both PSCH and QQQ?
PSCH and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSCH and QQQ?
PSCH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 179 unique securities.
Which pays a higher dividend, PSCH or QQQ?
PSCH yields 0.01% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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