PSCH - ETF AI Analysis

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Invesco S&P SmallCap Health Care ETF (PSCH)

Rating:67Neutral

Price Target:―

PSCH, the Invesco S&P SmallCap Health Care ETF, earns a solid overall rating largely because several key holdings like Alkermes, Krystal Biotech, and TransMedics Group show strong financial performance, positive earnings calls, and strategic growth moves that support long-term potential. However, some holdings such as BrightSpring Health Services and Radnet face challenges with high leverage, weaker profitability, and valuation concerns, which weigh on the fund’s rating. The main risk factor is its focus on small-cap health care names, where high valuations, leverage, and overbought technical conditions can make prices more volatile.

Positive Factors

Focused Health Care Exposure

The ETF is heavily invested in the health care sector, giving investors targeted access to small-cap health care companies.

Several Strong Top Holdings

Some of the largest positions, such as Krystal Biotech, Glaukos, Alkermes, and TransMedics Group, have shown strong year-to-date performance, helping support the fund’s returns.

Moderate Expense Ratio

The fund’s expense ratio is reasonable for a specialized small-cap sector ETF, helping keep ongoing costs from becoming too burdensome.

Negative Factors

Sector Concentration Risk

With the vast majority of assets in health care, the ETF is highly sensitive to downturns or regulatory changes affecting that single sector.

Mixed Performance Among Top Holdings

Several key holdings, including Arrowhead Pharmaceuticals, PTC Therapeutics, Radnet, Merit Medical Systems, Protagonist Therapeutics, and Teleflex, have shown weak year-to-date performance, which can drag on overall results.

Limited Geographic Diversification

The portfolio is almost entirely invested in U.S. companies, offering little diversification across different countries or regions.

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

AUM137.80M

RegionNorth America

Expense Ratio0.29%

Beta0.80

IssuerInvesco

Inception DateApr 07, 2010

Dividend Yield0.09%

Asset ClassEquity

Index TrackedS&P SmallCap 600 Capped Health Care Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume15,256

30 Day Avg. Volume13,300

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

59.32

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering76

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

PSCH Summary

The Invesco S&P SmallCap Health Care ETF (PSCH) invests in smaller U.S. health care companies by tracking the S&P SmallCap 600 Capped Health Care Index. It holds a mix of businesses in areas like drugs, biotech, medical devices, and health care services. Examples include Arrowhead Pharmaceuticals and Teleflex. Someone might consider this ETF if they want growth potential from innovative, younger health care companies and diversification across many small firms instead of picking single stocks. A key risk is that small health care stocks can be very volatile, so the ETF’s price can rise and fall sharply with the market and sector news.

How much will it cost me?The Invesco S&P SmallCap Health Care ETF (PSCH) has an expense ratio of 0.29%, meaning you’ll pay $2.90 per year for every $1,000 invested. This cost is slightly higher than average because the ETF focuses on a niche sector and tracks small-cap health care companies, which require more active management compared to broad-market passive ETFs.

What would affect this ETF?The Invesco S&P SmallCap Health Care ETF (PSCH) could benefit from advancements in biotechnology, pharmaceuticals, and medical devices, as small-cap companies often drive innovation in the health care sector. However, it may face challenges from rising interest rates, which can increase borrowing costs for smaller companies, and regulatory changes in the U.S. health care industry that could impact profitability. The ETF’s focus on U.S. small-cap health care stocks makes it sensitive to domestic economic conditions and sector-specific trends.

PSCH Top 10 Holdings

PSCH is a pure U.S. small-cap health care play, and its story is all about nimble drug and device makers rather than Big Tech heavyweights. Rising names like Alkermes, BrightSpring, and TransMedics are helping pull the fund forward with upbeat earnings and growth narratives. Glaukos and Krystal Biotech are also adding some spark, though their recent pullbacks show the ride can be bumpy. On the flip side, lagging stocks such as PTC Therapeutics, Merit Medical, and RadNet are acting as a brake, reminding investors that small-cap health care can be a high-volatility neighborhood.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
KRYS	Krystal Biotech	4.01%	$5.56M	$7.61B	45.49%	80 Outperform
GKOS	Glaukos	3.88%	$5.39M	$6.51B	8.62%	61 Neutral
PTGX	Protagonist Therapeutics	3.26%	$4.53M	$5.83B	134.08%	68 Neutral
TFX	Teleflex	3.08%	$4.28M	$5.20B	-13.72%	68 Neutral
PTCT	PTC Therapeutics	3.02%	$4.20M	$5.24B	19.94%	72 Outperform
TMDX	TransMedics Group	2.95%	$4.10M	$4.80B	114.54%	77 Outperform
RDNT	Radnet	2.90%	$4.02M	$5.17B	29.26%	63 Neutral
ALKS	Alkermes	2.83%	$3.93M	$4.72B	-18.18%	80 Outperform
BTSG	BrightSpring Health Services, Inc.	2.79%	$3.87M	$8.08B	142.43%	67 Neutral
MMSI	Merit Medical Systems	2.57%	$3.57M	$4.37B	-27.76%	68 Neutral

PSCH Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

44.24

Negative

100DMA

43.89

Negative

200DMA

42.13

Positive

Market Momentum

MACD

-0.36

Negative

RSI

38.82

Neutral

STOCH

38.10

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PSCH, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 43.05, equal to the 50-day MA of 44.24, and equal to the 200-day MA of 42.13, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSCH.

PSCH Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
PSCH	―	―	$137.80M	0.29%	67 Neutral
FXH	―	―	$908.57M	0.61%	71 Outperform
RSPH	―	―	$772.34M	0.40%	71 Outperform
IHF	―	―	$731.76M	0.38%	69 Neutral
PINK	―	―	$284.27M	0.51%	66 Neutral
PTH	―	―	$122.87M	0.60%	59 Neutral

Performance Comparison

PSCH

Invesco S&P SmallCap Health Care ETF

41.50

-0.86

-2.03%

FXH

First Trust Health Care AlphaDEX Fund

―

RSPH

Invesco S&P 500 Equal Weight Health Care ETF

―

IHF

iShares U.S. Healthcare Providers ETF

―

PINK

Simplify Health Care ETF

―

PTH

Invesco DWA Healthcare 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.

Disclaimer

This 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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