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Should You Invest in the Invesco S&P SmallCap Financials ETF (PSCF)?
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The Invesco S&P SmallCap Financials ETF (PSCF - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Broad segment of the equity market.
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. Financials - 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 $216.44 M, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the equity market. PSCF seeks to match the performance of the S&P SmallCap 600 Capped Financials and Real Estate Index before fees and expenses.
The S&P SmallCap 600 Capped Financials and Real Estate Index is designed to measure the overall performance of common stocks of US financial services 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.
It has a 12-month trailing dividend yield of 2.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 74.70% of the portfolio, followed by Real Estate.
Looking at individual holdings, First Financial Bankshares Inc (FFIN - Free Report) accounts for about 2.08% of total assets, followed by Green Dot Corp (GDOT - Free Report) and Glacier Bancorp Inc (GBCI - Free Report) .
The top 10 holdings account for about 17.86% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P SmallCap Financials ETF has lost about -1.92% so far, and is down about -0.57% over the last 12 months (as of 10/23/2018). PSCF has traded between $51.66 and $60.46 in this past 52-week period.
The ETF has a beta of 0.93 and standard deviation of 15.80% for the trailing three-year period, making it a medium risk choice in the space. With about 135 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Financials 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, PSCF is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Financials ETF (VFH - Free Report) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR Fund (XLF - Free Report) tracks Financial Select Sector Index. Vanguard Financials ETF has $7.76 B in assets, Financial Select Sector SPDR Fund has $28.79 B. VFH has an expense ratio of 0.10% and XLF charges 0.13%.
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 Financials ETF (PSCF)?
The Invesco S&P SmallCap Financials ETF (PSCF - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Broad segment of the equity market.
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. Financials - 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 $216.44 M, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the equity market. PSCF seeks to match the performance of the S&P SmallCap 600 Capped Financials and Real Estate Index before fees and expenses.
The S&P SmallCap 600 Capped Financials and Real Estate Index is designed to measure the overall performance of common stocks of US financial services 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.
It has a 12-month trailing dividend yield of 2.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 74.70% of the portfolio, followed by Real Estate.
Looking at individual holdings, First Financial Bankshares Inc (FFIN - Free Report) accounts for about 2.08% of total assets, followed by Green Dot Corp (GDOT - Free Report) and Glacier Bancorp Inc (GBCI - Free Report) .
The top 10 holdings account for about 17.86% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P SmallCap Financials ETF has lost about -1.92% so far, and is down about -0.57% over the last 12 months (as of 10/23/2018). PSCF has traded between $51.66 and $60.46 in this past 52-week period.
The ETF has a beta of 0.93 and standard deviation of 15.80% for the trailing three-year period, making it a medium risk choice in the space. With about 135 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Financials 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, PSCF is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Financials ETF (VFH - Free Report) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR Fund (XLF - Free Report) tracks Financial Select Sector Index. Vanguard Financials ETF has $7.76 B in assets, Financial Select Sector SPDR Fund has $28.79 B. VFH has an expense ratio of 0.10% and XLF charges 0.13%.
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.