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Should You Invest in the Invesco S&P SmallCap Industrials ETF (PSCI)?
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Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Invesco S&P SmallCap Industrials ETF (PSCI - Free Report) , a passively managed exchange traded fund launched on 04/07/2010.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $202.13 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PSCI seeks to match the performance of the S&P SmallCap 600 Capped Industrials Index before fees and expenses.
The S&P SmallCap 600 Capped Industrials Index measures the overall performance of the securities of US industrial companies which are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.70%.
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 Industrials sector--about 99.50% of the portfolio.
Looking at individual holdings, Mueller Industries Inc (MLI - Free Report) accounts for about 3.48% of total assets, followed by Spx Technologies Inc (SPXC - Free Report) and Robert Half Inc (RHI - Free Report) .
The top 10 holdings account for about 26.52% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P SmallCap Industrials ETF return is roughly 17% so far, and was up about 37.36% over the last 12 months (as of 10/17/2024). PSCI has traded between $93.45 and $135.03 in this past 52-week period.
The ETF has a beta of 1.18 and standard deviation of 22.53% for the trailing three-year period, making it a high risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Industrials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PSCI is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.82 billion in assets, Industrial Select Sector SPDR ETF has $20.40 billion. VIS has an expense ratio of 0.10% and XLI charges 0.09%.
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 Industrials ETF (PSCI)?
Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Invesco S&P SmallCap Industrials ETF (PSCI - Free Report) , a passively managed exchange traded fund launched on 04/07/2010.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $202.13 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PSCI seeks to match the performance of the S&P SmallCap 600 Capped Industrials Index before fees and expenses.
The S&P SmallCap 600 Capped Industrials Index measures the overall performance of the securities of US industrial companies which are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.70%.
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 Industrials sector--about 99.50% of the portfolio.
Looking at individual holdings, Mueller Industries Inc (MLI - Free Report) accounts for about 3.48% of total assets, followed by Spx Technologies Inc (SPXC - Free Report) and Robert Half Inc (RHI - Free Report) .
The top 10 holdings account for about 26.52% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P SmallCap Industrials ETF return is roughly 17% so far, and was up about 37.36% over the last 12 months (as of 10/17/2024). PSCI has traded between $93.45 and $135.03 in this past 52-week period.
The ETF has a beta of 1.18 and standard deviation of 22.53% for the trailing three-year period, making it a high risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Industrials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PSCI is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.82 billion in assets, Industrial Select Sector SPDR ETF has $20.40 billion. VIS has an expense ratio of 0.10% and XLI charges 0.09%.
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.