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Should You Invest in the Invesco S&P SmallCap Industrials ETF (PSCI)?

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The Invesco S&P SmallCap Industrials ETF (PSCI - Free Report) was launched on 04/07/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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. Industrials - 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 $220.28 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PSCI seeks to match the performance of the S&P SmallCap 600 Capped Industrials Index before fees and expenses.

The S&P SmallCap 600 Capped Industrials Index measures the overall performance of the securities of US industrial companies which are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 0.64%.

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 Industrials sector--about 100% of the portfolio.

Looking at individual holdings, Alaska Air Group Inc (ALK - Free Report) accounts for about 3.45% of total assets, followed by Robert Half Inc (RHI - Free Report) and Spx Technologies Inc (SPXC - Free Report) .

The top 10 holdings account for about 25.39% of total assets under management.

Performance and Risk

So far this year, PSCI has added roughly 1.78%, and is up about 16.74% in the last one year (as of 02/17/2025). During this past 52-week period, the fund has traded between $117.62 and $149.43.

The ETF has a beta of 1.21 and standard deviation of 22.14% for the trailing three-year period, making it a high risk choice in the space. With about 95 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P SmallCap Industrials 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, PSCI is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.75 billion in assets, Industrial Select Sector SPDR ETF has $21.66 billion. VIS has an expense ratio of 0.09% and XLI 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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