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PSCM - ETF AI Analysis

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PSCM

Invesco S&P SmallCap Materials ETF (PSCM)

Rating:64Neutral
Price Target:
PSCM’s rating suggests it is a solid but not top-tier materials-focused ETF, with its performance driven largely by strong holdings like Eastman Chemical and Balchem, which offer solid financials, attractive dividends or buybacks, and strategic growth initiatives. However, weaker names such as Chemours and Celanese, which face financial challenges, high leverage, or profitability issues, weigh on the fund, and investors should also be aware that its concentration in small-cap materials companies makes it sensitive to sector-specific and economic cycles.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum in its holdings.
Leading Holdings Performing Well
Several of the largest positions, including key chemical and materials companies, have delivered strong year-to-date results that support the fund’s overall performance.
Moderate Expense Ratio
The fund’s fee is reasonable for a specialized sector ETF, helping investors keep more of their returns compared with many niche products.
Negative Factors
Sector Concentration Risk
With almost all assets in the materials sector, the ETF is highly sensitive to downturns in that single industry.
High Stock Concentration
A small number of holdings make up a large share of the portfolio, increasing the impact if any of these companies run into trouble.
Small Asset Base
The fund manages a relatively low amount of assets, which can sometimes lead to wider trading spreads and a higher chance of the ETF being closed in the future.

PSCM vs. SPDR S&P 500 ETF (SPY)

PSCM Summary

The Invesco S&P SmallCap Materials ETF (PSCM) tracks the materials part of the S&P SmallCap 600 Index, focusing on smaller U.S. companies that make chemicals, construction materials, packaging, metals, mining products, and paper. Well-known holdings include Eastman Chemical and Celanese. Investors might consider PSCM if they want targeted exposure to the materials sector and believe smaller companies can grow faster than large ones, while still getting diversification across many stocks. A key risk is that it is heavily concentrated in one sector and in small-cap stocks, so its price can be more volatile and can go up and down sharply.
How much will it cost me?The Invesco S&P SmallCap Materials ETF (PSCM) has an expense ratio of 0.29%, which means you’ll pay $2.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it focuses on a specific sector and small-cap companies, which require more active management compared to broad, passively managed funds.
What would affect this ETF?The Invesco S&P SmallCap Materials ETF (PSCM) could benefit from increased demand for materials driven by infrastructure spending or growth in construction and manufacturing sectors, particularly in the U.S. However, it may face challenges from rising interest rates, which can increase borrowing costs for small-cap companies, or economic slowdowns that reduce demand for materials. Regulatory changes or environmental policies affecting mining and chemicals could also impact its performance.

PSCM Top 10 Holdings

PSCM is a pure U.S. small-cap materials play, and a handful of names are really steering the ship. Element Solutions and Materion have been rising and look like key engines for the fund, with Century Aluminum also adding some spark. Eastman Chemical and Sensient are more steady contributors, helping smooth out the ride. On the flip side, Celanese and Chemours have been lagging at times, occasionally throwing sand in the ETF’s gears. Overall, the fund is tightly tied to chemicals and specialty materials, with little diversification beyond the sector.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Element Solutions12.51%$2.65M$10.39B99.20%
65
Neutral
Eastman Chemical10.60%$2.24M$8.77B-4.71%
72
Outperform
Celanese8.15%$1.73M$6.06B2.77%
57
Neutral
Balchem6.46%$1.37M$5.05B-5.60%
75
Outperform
Materion5.50%$1.17M$4.78B196.39%
69
Neutral
Sensient Technologies5.47%$1.16M$4.83B20.76%
63
Neutral
Chemours Company4.82%$1.02M$3.50B134.14%
49
Neutral
Hawkins4.59%$972.43K$3.28B18.10%
58
Neutral
Warrior Met Coal4.47%$946.54K$5.82B139.43%
69
Neutral
Century Aluminum4.39%$928.99K$6.81B254.12%
61
Neutral

PSCM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
102.75
Positive
100DMA
99.27
Positive
200DMA
88.77
Positive
Market Momentum
MACD
0.73
Negative
RSI
59.58
Neutral
STOCH
83.97
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PSCM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 104.57, equal to the 50-day MA of 102.75, and equal to the 200-day MA of 88.77, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSCM.

PSCM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$21.14M0.29%
64
Neutral
$91.80M0.61%
69
Neutral
$83.87M0.60%
65
Neutral
$82.83M0.60%
68
Neutral
$80.51M0.60%
66
Neutral
$76.83M0.60%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSCM
Invesco S&P SmallCap Materials ETF
105.90
39.59
59.70%
PBJ
Invesco Dynamic Food & Beverage ETF
PYZ
Invesco DWA Basic Materials Momentum ETF
PSL
Invesco DWA Consumer Staples Momentum ETF
PXI
Invesco DWA Energy Momentum ETF
PUI
Invesco DWA Utilities Momentum ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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