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Should You Invest in the Invesco S&P SmallCap Energy ETF (PSCE)?
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The Invesco S&P SmallCap Energy ETF (PSCE - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $206.13 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. PSCE seeks to match the performance of the S&P SmallCap 600 Capped Energy Index before fees and expenses.
The S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of US energy companies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.34%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Matador Resources Co accounts for about 10.56% of total assets, followed by Southwestern Energy Co and Civitas Resources Inc (17888H103).
The top 10 holdings account for about 64.50% of total assets under management.
Performance and Risk
So far this year, PSCE return is roughly 68.29%, and is up about 56.23% in the last one year (as of 06/08/2022). During this past 52-week period, the fund has traded between $5.70 and $12.44.
The ETF has a beta of 2.04 and standard deviation of 57.77% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P SmallCap Energy ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PSCE is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $9.78 billion in assets, Energy Select Sector SPDR ETF has $45.24 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
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 Invesco S&P SmallCap Energy ETF (PSCE)?
The Invesco S&P SmallCap Energy ETF (PSCE - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $206.13 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. PSCE seeks to match the performance of the S&P SmallCap 600 Capped Energy Index before fees and expenses.
The S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of US energy companies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.34%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Matador Resources Co accounts for about 10.56% of total assets, followed by Southwestern Energy Co and Civitas Resources Inc (17888H103).
The top 10 holdings account for about 64.50% of total assets under management.
Performance and Risk
So far this year, PSCE return is roughly 68.29%, and is up about 56.23% in the last one year (as of 06/08/2022). During this past 52-week period, the fund has traded between $5.70 and $12.44.
The ETF has a beta of 2.04 and standard deviation of 57.77% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P SmallCap Energy ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PSCE is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $9.78 billion in assets, Energy Select Sector SPDR ETF has $45.24 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
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.