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Should You Invest in the Invesco S&P SmallCap Information Technology ETF (PSCT)?
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Launched on 04/07/2010, the Invesco S&P SmallCap Information Technology ETF (PSCT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - 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. Technology - 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. It has amassed assets over $309.04 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PSCT seeks to match the performance of the S&P SmallCap 600 Capped Information Technology Index before fees and expenses.
The S&P SmallCap 600 Capped Information Technology Index measures the overall performance of common stocks of US information technology companies.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space.
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 Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Sps Commerce Inc (SPSC - Free Report) accounts for about 4.49% of total assets, followed by Rambus Inc (RMBS - Free Report) and Insight Enterprises Inc (NSIT - Free Report) .
The top 10 holdings account for about 35.36% of total assets under management.
Performance and Risk
The ETF return is roughly 9.45% so far this year and was up about 8.11% in the last one year (as of 05/22/2023). In that past 52-week period, it has traded between $109.76 and $140.02.
The ETF has a beta of 1.21 and standard deviation of 27.16% for the trailing three-year period, making it a high risk choice in the space. With about 69 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Information Technology 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, PSCT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $45.47 billion in assets, Vanguard Information Technology ETF has $48.08 billion. XLK has an expense ratio of 0.10% and VGT 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 Information Technology ETF (PSCT)?
Launched on 04/07/2010, the Invesco S&P SmallCap Information Technology ETF (PSCT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - 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. Technology - 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. It has amassed assets over $309.04 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PSCT seeks to match the performance of the S&P SmallCap 600 Capped Information Technology Index before fees and expenses.
The S&P SmallCap 600 Capped Information Technology Index measures the overall performance of common stocks of US information technology companies.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space.
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 Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Sps Commerce Inc (SPSC - Free Report) accounts for about 4.49% of total assets, followed by Rambus Inc (RMBS - Free Report) and Insight Enterprises Inc (NSIT - Free Report) .
The top 10 holdings account for about 35.36% of total assets under management.
Performance and Risk
The ETF return is roughly 9.45% so far this year and was up about 8.11% in the last one year (as of 05/22/2023). In that past 52-week period, it has traded between $109.76 and $140.02.
The ETF has a beta of 1.21 and standard deviation of 27.16% for the trailing three-year period, making it a high risk choice in the space. With about 69 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Information Technology 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, PSCT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $45.47 billion in assets, Vanguard Information Technology ETF has $48.08 billion. XLK has an expense ratio of 0.10% and VGT 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.