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Should You Invest in the PowerShares S&P SmallCap Financials Portfolio (PSCF)?
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Launched on 04/07/2010, the PowerShares S&P SmallCap Financials Portfolio (PSCF - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the U.S. equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Invesco Powershares. It has amassed assets over $233.36 M, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the U.S. equity market. PSCF seeks to match the performance of the S&P SmallCap 600 Capped Financials and Real Estate Index before fees and expenses.
The S&P SmallCap 600 Capped Financials and Real Estate Index is designed to measure the overall performance of common stocks of US financial services companies.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.29%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.19%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 76.50% of the portfolio. Real Estate and Energy round out the top three.
Looking at individual holdings, Firstcash Inc (FCFS - Free Report) accounts for about 2.41% of total assets, followed by First Financial Bankshares Inc (FFIN - Free Report) and Selective Insurance Group Inc (SIGI - Free Report) .
The top 10 holdings account for about 18.06% of total assets under management.
Performance and Risk
Year-to-date, the PowerShares S&P SmallCap Financials Portfolio has added roughly 3.18% so far, and is up about 16.51% over the last 12 months (as of 05/21/2018). PSCF has traded between $48.81 and $56.52 in this past 52-week period.
The ETF has a beta of 0.94 and standard deviation of 16.25% for the trailing three-year period, making it a medium risk choice in the space. With about 126 holdings, it effectively diversifies company-specific risk.
Alternatives
PowerShares S&P SmallCap Financials Portfolio carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PSCF is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Financials ETF (VFH - Free Report) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR Fund (XLF - Free Report) tracks Financial Select Sector Index. Vanguard Financials ETF has $8.03 B in assets, Financial Select Sector SPDR Fund has $33.02 B. VFH has an expense ratio of 0.10% and XLF charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the PowerShares S&P SmallCap Financials Portfolio (PSCF)?
Launched on 04/07/2010, the PowerShares S&P SmallCap Financials Portfolio (PSCF - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the U.S. equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Invesco Powershares. It has amassed assets over $233.36 M, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the U.S. equity market. PSCF seeks to match the performance of the S&P SmallCap 600 Capped Financials and Real Estate Index before fees and expenses.
The S&P SmallCap 600 Capped Financials and Real Estate Index is designed to measure the overall performance of common stocks of US financial services companies.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.29%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.19%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 76.50% of the portfolio. Real Estate and Energy round out the top three.
Looking at individual holdings, Firstcash Inc (FCFS - Free Report) accounts for about 2.41% of total assets, followed by First Financial Bankshares Inc (FFIN - Free Report) and Selective Insurance Group Inc (SIGI - Free Report) .
The top 10 holdings account for about 18.06% of total assets under management.
Performance and Risk
Year-to-date, the PowerShares S&P SmallCap Financials Portfolio has added roughly 3.18% so far, and is up about 16.51% over the last 12 months (as of 05/21/2018). PSCF has traded between $48.81 and $56.52 in this past 52-week period.
The ETF has a beta of 0.94 and standard deviation of 16.25% for the trailing three-year period, making it a medium risk choice in the space. With about 126 holdings, it effectively diversifies company-specific risk.
Alternatives
PowerShares S&P SmallCap Financials Portfolio carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PSCF is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Financials ETF (VFH - Free Report) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR Fund (XLF - Free Report) tracks Financial Select Sector Index. Vanguard Financials ETF has $8.03 B in assets, Financial Select Sector SPDR Fund has $33.02 B. VFH has an expense ratio of 0.10% and XLF charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.