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Should You Invest in the Invesco S&P SmallCap Information Technology ETF (PSCT)?
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Launched on 04/07/2010, the Invesco S&P SmallCap Information Technology ETF (PSCT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - 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. Technology - 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 $325.99 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.03%.
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, Fabrinet (FN - Free Report) accounts for about 4.74% of total assets, followed by Sps Commerce Inc (SPSC - Free Report) and Insight Enterprises Inc (NSIT - Free Report) .
The top 10 holdings account for about 33.12% of total assets under management.
Performance and Risk
So far this year, PSCT has lost about -3.51%, and is up roughly 0.28% in the last one year (as of 06/04/2024). During this past 52-week period, the fund has traded between $38.78 and $50.15.
The ETF has a beta of 1.18 and standard deviation of 25.22% for the trailing three-year period, making it a high risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Information Technology ETF holds a Zacks ETF Rank of 1 (Strong 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.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $65.50 billion in assets, Vanguard Information Technology ETF has $67.94 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
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 Information Technology ETF (PSCT)?
Launched on 04/07/2010, the Invesco S&P SmallCap Information Technology ETF (PSCT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - 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. Technology - 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 $325.99 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.03%.
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, Fabrinet (FN - Free Report) accounts for about 4.74% of total assets, followed by Sps Commerce Inc (SPSC - Free Report) and Insight Enterprises Inc (NSIT - Free Report) .
The top 10 holdings account for about 33.12% of total assets under management.
Performance and Risk
So far this year, PSCT has lost about -3.51%, and is up roughly 0.28% in the last one year (as of 06/04/2024). During this past 52-week period, the fund has traded between $38.78 and $50.15.
The ETF has a beta of 1.18 and standard deviation of 25.22% for the trailing three-year period, making it a high risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P SmallCap Information Technology ETF holds a Zacks ETF Rank of 1 (Strong 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.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $65.50 billion in assets, Vanguard Information Technology ETF has $67.94 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
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.