Invesco S&P SmallCap Industrials ETF (NASDAQ:PSCI) is an exchange traded fund (ETF) that tracks the performance of the S&P SmallCap 600 Capped Industrials Index. The fund has assets under management of over $9.50 billion and it holds over 1,100 small-cap growth stocks, offering a diversified exposure to the industrial sector. The fund seeks to track the performance of the Alerian Midstream Energy Index, which is a benchmark index that tracks the performance of energy infrastructure companies, such as pipelines and storage facilities.
Recent performance of the PSCI ETF has been quite positive. In November 2020, small-cap stocks staged a great performance and the PSCI ETF was no exception, rising by almost 10%. The PSCI ETF has also significantly outperformed the S&P 500 index, which rose by only around 6% during the same period. Transportation stocks, traditionally residents of the industrial sector, have been the main driving force behind the strong performance of the ETF.
The fund invests in momentum stocks of large-cap companies and is well diversified across the industrial sector. The fund has exposure to stocks across 70 industrial sectors, such as aerospace & defense, industrial equipment, consumer goods, and energy. These stocks are likely to benefit from the long-term growth trend in the aerospace & defense industry, making investing in this fund a lucrative opportunity for investors.