PSCM vs QQQ
Invesco S&P SmallCap Materials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. PSCM delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | PSCM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $21M | $455.8B | |
| Dividend Yield | 0.97% | 0.41% | |
| Holdings | 27 | 108 | |
| YTD Return | +20.21% | +19.68% | |
| 1Y Return | +31.68% | +26.75% | |
| 3Y Return (annualized) | +15.76% | +26.25% | |
| 5Y Return (annualized) | +10.28% | +15.39% | |
| Volatility (annualized) | 24.4% | 30.6% | |
| Max Drawdown | -52.5% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2010 | Mar 10, 1999 |
PSCM vs QQQ Performance
Invesco S&P SmallCap Materials ETF (PSCM) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSCM returned +31.68% while QQQ returned +26.75%. Year to date, PSCM is up 20.21% versus a gain of 19.68% for QQQ.
Over three years, PSCM compounded at +15.76% per year against +26.25% for QQQ; over five years the annualized figures are +10.28% and +15.39% respectively. Across the full 16-year window we track, QQQ has the edge at +13.15% annualized vs +9.14%. 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 24.4% for PSCM. 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 -52.5% for PSCM 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSCM 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, PSCM currently yields 0.97% against 0.41% for QQQ.
Holdings Overlap
PSCM and QQQ share 0 holdings out of 128 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, PSCM or QQQ?
PSCM 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, PSCM or QQQ?
Over the past year PSCM returned +31.68% vs +26.75% for QQQ, so PSCM leads on 1-year performance. Over the longest common window we track (16 years), PSCM annualized +9.14% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSCM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.4% for PSCM. Worst drawdown: PSCM -52.5% vs QQQ -83.0%.
Should I hold both PSCM and QQQ?
PSCM and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSCM and QQQ?
PSCM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, PSCM or QQQ?
PSCM yields 0.97% while QQQ yields 0.41%, so PSCM currently pays the higher dividend yield.
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