Back to top

Image: Bigstock

Should You Invest in the Invesco S&P SmallCap Information Technology ETF (PSCT)?

Read MoreHide Full Article

Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Invesco S&P SmallCap Information Technology ETF (PSCT - Free Report) is a passively managed exchange traded fund launched on April 7, 2010.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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 1, placing it in top 6%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $329.68 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

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 0.02%.

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 Information Technology sector -- about 100% of the portfolio.

Looking at individual holdings, Interdigital Inc (IDCC) accounts for about 4.24% of total assets, followed by Sanmina Corp (SANM) and Advanced Energy Industries Inc (AEIS).

The top 10 holdings account for about 34.04% of total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P SmallCap Information Technology ETF has gained about 22.37% so far, and is up roughly 18.52% over the last 12 months (as of 12/25/2025). PSCT has traded between $34.03 and $60.868 in this past 52-week period.

The ETF has a beta of 1.22 and standard deviation of 26.71% for the trailing three-year period, making it a high risk choice in the space. With about 72 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 outstanding 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.

State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $94.23 billion in assets, Vanguard Information Technology ETF has $114.10 billion. XLK has an expense ratio of 0.08%, and VGT 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Invesco S&P SmallCap Information Technology ETF (PSCT) - free report >>

Published in