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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 somewhat mixed small-cap materials ETF, with both attractive strengths and notable risks. Strong contributors like Eastman Chemical and Kaiser Aluminum support the fund through a combination of financial stability, positive technical momentum, and shareholder-friendly actions, while weaker names such as Celanese, with its profitability and leverage challenges, drag on the overall quality. The main risk is the ETF’s concentration in small-cap materials companies, where several holdings show bearish momentum and valuation concerns, making the fund more sensitive to sector downturns and market volatility.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, helped by several well-performing holdings.
Leading Holdings Showing Solid Momentum
Many of the largest positions, such as Element Solutions, Materion, and Chemours, have shown strong upward performance, supporting the fund’s overall results.
Moderate Expense Ratio
The fund’s expense ratio is reasonable for a specialized small-cap sector ETF, allowing investors to keep more of their returns compared with many niche funds.
Negative Factors
High Concentration in Top Holdings
A small number of stocks make up a large share of the portfolio, which increases the impact that any one company’s performance can have on the ETF.
Sector Concentration in Materials
Almost all of the fund is invested in the materials sector, so it is highly sensitive to swings in commodity prices and industry-specific trends.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little exposure to materials businesses in other regions that might perform differently.

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

PSCM Summary

The Invesco S&P SmallCap Materials ETF (PSCM) tracks the S&P SmallCap 600 Materials index, focusing on smaller U.S. companies that make basic materials like chemicals, metals, packaging, and construction materials. Well-known names in the fund include Eastman Chemical and Celanese. Investors might consider PSCM if they want growth potential from smaller, more flexible companies and diversification within the materials sector, which supports many parts of the economy. However, because it invests in small-cap materials stocks, the ETF can be quite volatile and may go up and down sharply with changes in the economy and commodity prices.
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 play on U.S. small-cap materials, and a handful of names are steering the ship. Materion has been a standout, rising strongly this year and giving the fund a high-tech metals and defense flavor, while Kaiser Aluminum has also been climbing, adding some shine from the aluminum space. Sensient Technologies has been steady to rising, helping offset weakness. On the flip side, Element Solutions and Celanese have been losing steam lately, dragging on returns. Overall, the ETF is tightly focused on chemicals, metals, and specialty materials, with performance hinging on just a few key small-cap players.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Element Solutions11.49%$2.36M$8.95B61.48%
65
Neutral
Eastman Chemical10.96%$2.25M$8.00B18.43%
72
Outperform
Balchem7.43%$1.53M$5.38B11.70%
75
Outperform
Sensient Technologies7.15%$1.47M$5.26B11.19%
63
Neutral
Celanese6.41%$1.32M$4.90B-8.70%
57
Neutral
Materion4.47%$919.68K$4.39B102.34%
69
Neutral
H.B. Fuller Company4.37%$898.19K$2.97B1.19%
62
Neutral
Warrior Met Coal3.96%$814.90K$4.19B52.75%
69
Neutral
Hawkins3.96%$814.54K$2.67B-21.87%
58
Neutral
Kaiser Aluminum3.81%$784.17K$2.61B124.74%
76
Outperform

PSCM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
101.52
Negative
100DMA
101.09
Negative
200DMA
93.80
Positive
Market Momentum
MACD
-1.03
Negative
RSI
55.89
Neutral
STOCH
77.44
Neutral
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 97.38, equal to the 50-day MA of 101.52, and equal to the 200-day MA of 93.80, indicating a neutral trend. The MACD of -1.03 indicates Negative momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, 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
$98.94M0.29%
64
Neutral
$84.71M0.60%
67
Neutral
$72.14M0.60%
66
Neutral
$68.57M0.45%
67
Neutral
$65.74M0.15%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSCM
Invesco S&P SmallCap Materials ETF
101.85
29.24
40.27%
PSCE
Invesco S&P SmallCap Energy ETF
PSL
Invesco DWA Consumer Staples Momentum ETF
PYZ
Invesco DWA Basic Materials Momentum ETF
XITK
SPDR FactSet Innovative Technology ETF
GXPS
Global X PureCap MSCI Consumer Staples 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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