If you’re interested in broad exposure to the Technology – Broad segment of the equity market, look no further than the Invesco S&P SmallCap Information Technology ETF (PSCT), a passively managed exchange traded fund launched on April 7, 2010.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $529.22 million, making it one of the average sized ETFs attempting to match the performance of the Technology – Broad segment of the equity market. PSCT seeks to match the performance of the S&P SmallCap 600 Capped Information Technology Index before fees and expenses.
The S&P SmallCap 600 Capped Information Technology Index measures the overall performance of common stocks of US information technology companies.
Costs
Investors should also pay attention to an ETF’s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector — about 100% of the portfolio.
Looking at individual holdings, Viavi Solutions Inc (VIAV) accounts for about 4.61% of total assets, followed by Formfactor Inc (FORM) and Semtech Corp (SMTC).
The top 10 holdings account for about 34.49% of total assets under management.
Performance and Risk
The ETF has added roughly 48.57% so far this year and is up about 78.16% in the last one year (as of 07/03/2026). In that past 52-week period, it has traded between $44.278 and $92.412.
The ETF has a beta of 1.32 and standard deviation of 28.86% for the trailing three-year period, making it a high risk choice in the space. With about 73 holdings, it effectively diversifies company-specific risk.
Source: Original Article
