The Invesco S&P SmallCap Health Care ETF (PSCH) is a passively managed exchange-traded fund that aims to provide broad exposure to the Healthcare – Broad segment of the equity market. Passively managed ETFs are gaining popularity due to their low cost, transparency, flexibility, and tax efficiency. They are an excellent investment vehicle for long-term investors.
PSCH is sponsored by Invesco and currently has assets over $234.48 million. It seeks to match the performance of the S&P SmallCap 600 Capped Health Care Index before fees and expenses. This index measures the overall performance of common stocks in the health care sector.
With annual operating expenses of 0.29%, PSCH is one of the least expensive ETFs in the space. It has a heavy allocation in the Healthcare sector, comprising approximately 100% of the portfolio. The top ten holdings account for about 33.61% of total assets under management, with Ensign Group Inc/the, Merit Medical Systems Inc, and Glaukos Corp being the largest holdings.
In terms of performance, PSCH has lost about -11.56% year-to-date and is down about -16.09% over the past year. It has a beta of 0.98 and a standard deviation of 22.98% for the trailing three-year period, indicating high risk. However, with 76 holdings, the ETF effectively diversifies company-specific risk.
For investors seeking exposure to the Health Care ETFs area of the market, PSCH is a reasonable option. Alternatively, they can consider Vanguard Health Care ETF (VHT) and Health Care Select Sector SPDR ETF (XLV) as other ETF options in the space.
In conclusion, the Invesco S&P SmallCap Health Care ETF provides investors with broad exposure to the Healthcare sector. With its low expense ratio and diversified holdings, it offers a convenient and cost-effective way to invest in the healthcare industry.
Sources:
– Invesco S&P SmallCap Health Care ETF (PSCH): ETF Research Reports
– Merit Medical Systems, Inc. (MMSI): Free Stock Analysis Report
– Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
– Vanguard Health Care ETF (VHT): ETF Research Reports
– The Ensign Group, Inc. (ENSG): Free Stock Analysis Report
– Glaukos Corporation (GKOS): Free Stock Analysis Report
