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Should You Invest in the Invesco S&P SmallCap Health Care ETF (PSCH)?
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The Invesco S&P SmallCap Health Care ETF (PSCH - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - 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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $212.62 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PSCH seeks to match the performance of the S&P SmallCap 600 Capped Health Care Index before fees and expenses.
The S&P SmallCap 600 Capped Health Care Index measures the overall performance of common stocks in the health care sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.09%.
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 Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Ensign Group Inc/the (ENSG - Free Report) accounts for about 5.84% of total assets, followed by Organon & Co (OGN - Free Report) and Alkermes Plc (ALKS - Free Report) .
The top 10 holdings account for about 35.57% of total assets under management.
Performance and Risk
The ETF return is roughly 0.65% so far this year and is down about -0.66% in the last one year (as of 05/27/2024). In that past 52-week period, it has traded between $34.80 and $45.05.
The ETF has a beta of 0.94 and standard deviation of 22.97% for the trailing three-year period, making it a high risk choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Health Care 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, PSCH is a good option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $17.65 billion in assets, Health Care Select Sector SPDR ETF has $39.02 billion. VHT has an expense ratio of 0.10% and XLV 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 Health Care ETF (PSCH)?
The Invesco S&P SmallCap Health Care ETF (PSCH - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - 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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $212.62 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PSCH seeks to match the performance of the S&P SmallCap 600 Capped Health Care Index before fees and expenses.
The S&P SmallCap 600 Capped Health Care Index measures the overall performance of common stocks in the health care sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.09%.
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 Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Ensign Group Inc/the (ENSG - Free Report) accounts for about 5.84% of total assets, followed by Organon & Co (OGN - Free Report) and Alkermes Plc (ALKS - Free Report) .
The top 10 holdings account for about 35.57% of total assets under management.
Performance and Risk
The ETF return is roughly 0.65% so far this year and is down about -0.66% in the last one year (as of 05/27/2024). In that past 52-week period, it has traded between $34.80 and $45.05.
The ETF has a beta of 0.94 and standard deviation of 22.97% for the trailing three-year period, making it a high risk choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Health Care 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, PSCH is a good option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $17.65 billion in assets, Health Care Select Sector SPDR ETF has $39.02 billion. VHT has an expense ratio of 0.10% and XLV 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.