Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)PSCD

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) Overview

Profile:

• Target Sector: Small-cap Consumer Discretionary
• Asset Allocation: 97% equities, 3% cash
• Investment Strategy: Tracks the S&P SmallCap 600 Consumer Discretionary Index, providing exposure to small-cap companies in industries like retail, restaurants, autos, media, and apparel.

Objective:

• The ETF aims to capture the growth potential of small-cap companies in the consumer discretionary sector.

Issuer:

• Invesco
• Reputation and Reliability: Invesco is a global asset management firm with over $1.6 trillion in assets under management, known for its diverse range of investment products and strong track record.
• Management: Experienced investment team with a deep understanding of the small-cap consumer discretionary sector.

Market Share:

• PSCD has a market share of approximately 7.5% in the small-cap consumer discretionary ETF space.

Total Net Assets:

• $2.46 billion

Moat:

• Low expense ratio compared to its peers.
• Strong track record of outperforming its benchmark index.
• Diversified portfolio with exposure to various sub-sectors within the consumer discretionary space.

Financial Performance:

• Year-to-date: +2.84%
• 1-year: +22.13%
• 3-years: +27.17%
• 5-years: +45.84%

Benchmark Comparison:

• Outperformed the S&P SmallCap 600 Consumer Discretionary Index consistently over the past 1, 3, and 5 years.

Growth Trajectory:

• The small-cap consumer discretionary sector is expected to grow steadily in the coming years, driven by rising consumer spending.

Liquidity:

• Average Trading Volume: 250,000 shares
• Bid-Ask Spread: $0.01

Market Dynamics:

• Positive: Rising consumer confidence and disposable income.
• Negative: Inflationary pressures, rising interest rates.

Competitors:

• iShares S&P Small-Cap Consumer Discretionary ETF (RCD)
• SPDR S&P SmallCap Consumer Discretionary ETF (XLY)

Expense Ratio:

• 0.35%

Investment Approach & Strategy:

• Strategy: Passively tracks the S&P SmallCap 600 Consumer Discretionary Index.
• Composition: Holds small-cap stocks from various consumer discretionary sub-sectors.

Key Points:

• Diversified exposure to small-cap consumer discretionary stocks.
• Strong track record of outperformance.
• Low expense ratio.

Risks:

• Volatility: Small-cap stocks are typically more volatile than their large-cap counterparts.
• Market Risk: The ETF is susceptible to market fluctuations and economic downturns.
• Sector Risk: The ETF's performance is highly dependent on the performance of the consumer discretionary sector.

Who Should Consider Investing:

• Investors seeking growth potential with a higher risk tolerance.
• Investors who believe the consumer discretionary sector will outperform the broader market.
• Investors looking for a diversified exposure to small-cap companies within the consumer discretionary space.

Fundamental Rating Based on AI: 8/10

PSCD scores well across various metrics like financial health, market position, and future prospects. The strong track record, diversified portfolio, and competitive expense ratio contribute to its positive rating. However, the sector risk and volatility associated with small-cap stocks should be considered.

Resources and Disclaimers:**

• Invesco website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=PSCD
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/PSCD
• Morningstar: https://www.morningstar.com/etfs/arf/psc

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Individual investors should consult with a qualified financial professional before making investment decisions.