XLE - PSCE: A Play On Undervalued Small-Cap Energy
2024-02-12 16:35:00 ET
Summary
- Invesco S&P SmallCap Energy ETF focuses on small-capitalization U.S. energy companies, offering potential for growth.
- The PSCE ETF has a higher expense ratio and volatility compared to the large-cap ETF XLE, but may be due for a reversal in its price ratio.
- Investing in PSCE allows exposure to industry-specific trends and developments, but comes with the risks of small-cap companies and sector-specific volatility.
Investing in the right sector is critical to outperforming over time, but within that, so too is considering whether you want large or small-cap exposure within that sector. When it comes to energy exchange-traded funds, or ETFs, the Invesco S&P SmallCap Energy ETF ( PSCE ) stands out due to its unique focus on small-capitalization U.S. energy companies. PSCE is structured around the S&P SmallCap 600® Capped Energy Index. The fund typically invests a minimum of 90% of its total assets in securities belonging to small-capitalization U.S. energy firms that form this index. The index itself is specifically designed to measure the performance of common stocks of U.S. energy companies....
PSCE: A Play On Undervalued Small-Cap Energy