Back to top

Image: Bigstock

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

Read MoreHide Full Article

If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Invesco S&P SmallCap Information Technology ETF (PSCT - Free Report) , a passively managed exchange traded fund launched on April 7, 2010.

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.

Investor-friendly, sector ETFs provide many options 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 3, placing it in top 19%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $477.45 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

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, 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, Formfactor Inc (FORM) accounts for about 4.7% of total assets, followed by Viasat Inc (VSAT) and Qorvo Inc (QRVO).

The top 10 holdings account for about 31.31% of total assets under management.

Performance and Risk

The ETF return is roughly 36.65% so far this year and it's up approximately 33.44% in the last one year (as of 11/03/2026). In that past 52-week period, it has traded between $51.641 and $92.412.

The ETF has a beta of 1.32 and standard deviation of 29.69% for the trailing three-year period, making it a high risk choice in the space. With about 74 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 Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $115.18 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $140.09 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.

Published in