PSCH vs SPY
Invesco S&P SmallCap Health Care ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PSCH delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PSCH | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.09% | |
| AUM | $183M | $821.1B | |
| Dividend Yield | 0.01% | 1.01% | |
| Holdings | 80 | 505 | |
| YTD Return | +26.12% | +14.24% | |
| 1Y Return | +38.85% | +21.71% | |
| 3Y Return (annualized) | +9.83% | +22.10% | |
| 5Y Return (annualized) | -1.82% | +13.21% | |
| Volatility (annualized) | 19.7% | 15.3% | |
| Max Drawdown | -46.3% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2010 | Jan 22, 1993 |
PSCH vs SPY Performance
Invesco S&P SmallCap Health Care ETF (PSCH) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PSCH returned +38.85% while SPY returned +21.71%. Year to date, PSCH is up 26.12% versus a gain of 14.24% for SPY.
Over three years, PSCH compounded at +9.83% per year against +22.10% for SPY; over five years the annualized figures are -1.82% and +13.21% respectively. Across the full 16-year window we track, PSCH has the edge at +12.40% annualized vs +8.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSCH has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSCH charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, PSCH currently yields 0.01% against 1.01% for SPY.
Holdings Overlap
PSCH and SPY share 0 holdings out of 581 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 SPY?
PSCH has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, PSCH or SPY?
Over the past year PSCH returned +38.85% vs +21.71% for SPY, so PSCH leads on 1-year performance. Over the longest common window we track (16 years), PSCH annualized +12.40% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, PSCH or SPY?
PSCH has been the more volatile fund at 19.7% annualized versus 15.3% for SPY. Worst drawdown: PSCH -46.3% vs SPY -56.5%.
Should I hold both PSCH and SPY?
PSCH and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSCH and SPY?
PSCH and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 581 unique securities.
Which pays a higher dividend, PSCH or SPY?
PSCH yields 0.01% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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