PSCT - PSCT: Own Large-Cap Tech Stocks Instead
2024-05-31 12:21:49 ET
Summary
- Invesco S&P SmallCap Information Technology ETF owns a portfolio of 68 U.S. small-cap technology stocks.
- PSCT has the potential to outperform other non-technology small-cap funds due to its exposure to the fast-growing technology industry.
- However, PSCT may continue to underperform its larger-cap technology peers due to higher failure rates of small-cap stocks and limited benefit from the growth of successful startups.
ETF Overview
Invesco S&P SmallCap Information Technology ETF ( PSCT ) owns a portfolio of 68 U.S. small-cap technology stocks. Given its exposure to the fast-growing technology industry, the fund has the potential to outperform other non-technology small-cap funds. However, PSCT will likely continue to underperform its larger-cap technology peer funds as: (1) small-cap technology names have higher rate of failure than large-cap stocks; (2) many successful startups will eventually become large-cap stocks and PSCT will not enjoy the full benefit of the growth of these stocks. The fund’s expense ratio of 0.29% is also higher than its large-cap technology peers. Hence, we think investors with a long-term investment horizon that wish to optimize their total returns should seek large-cap technology funds instead....
PSCT: Own Large-Cap Tech Stocks Instead