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) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.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.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 2, placing it in top 13%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $331.49 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.CostsWhen 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 HoldingsEven 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 Information Technology sector--about 100% of the portfolio.Looking at individual holdings, Sps Commerce Inc (SPSC) accounts for about 4.09% of total assets, followed by Badger Meter Inc (BMI) and Aci Worldwide Inc (ACIW).The top 10 holdings account for about 32.67% of total assets under management.Performance and RiskThe ETF return is roughly 5.38% so far this year and it's up approximately 16.89% in the last one year (as of 12/09/2024). In that past 52-week period, it has traded between $42.42 and $51.53.The ETF has a beta of 1.18 and standard deviation of 26.20% for the trailing three-year period, making it a high risk choice in the space. With about 66 holdings, it effectively diversifies company-specific risk.AlternativesInvesco 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 a great 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) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $74.88 billion in assets, Vanguard Information Technology ETF has $86.55 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P SmallCap Information Technology ETF (PSCT): ETF Research Reports Badger Meter, Inc. (BMI): Free Stock Analysis Report SPS Commerce, Inc. (SPSC): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks