Share-split context: A forward split was recorded on Jul 17, 2023 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

Understanding the Invesco S&P SmallCap Consumer Staples ETF (PSCC)

The Invesco S&P SmallCap Consumer Staples ETF (ticker: PSCC) is designed to track the performance of smaller companies in the consumer staples sector. Consumer staples are companies that make things people usually need, like food and household products.

What this ETF is trying to do

This ETF focuses on small-cap companies within the consumer staples industry. By investing in these smaller businesses, the fund provides exposure to a specific part of the market that includes companies making snacks, household goods, and other everyday items.

What the numbers show

The performance of PSCC can be looked at in two ways: price return and total return. Price return only tracks how the share price changes, while total return includes both price changes and the money paid out through distributions.

• Year-to-Date (YTD): The price return is approximately 7.23%, while the total return is approximately 8.93%.

• One-Year: The price return was approximately 1.61%, and the total return was approximately 3.68%.

• Three-Year: The price return was approximately -0.31%, but the total return was approximately 5.88%.

• Five-Year: The five-year total return is approximately 6.21%.

Because this ETF has a history of forward splits, we use split-adjusted returns to show how the value changed over time. In a forward split, one old share becomes multiple new shares. This changes the price per share, but it does not change the total value of your investment at the moment it happens.

Income and distribution explanation

PSCC provides cash distributions to investors. The trailing distributions are approximately $0.67 per share. The distribution yield is approximately 2.01%. This yield represents the cash paid out relative to the current ETF price. The fund usually pays these distributions quarterly, with four payments recorded over the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, we can look at the erosion-risk score, which is 94. This is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in the portfolio (note that this list is partial):

• Conagra Brands Inc (13.22%)

• Lamb Weston Holdings Inc (11.61%)

• The Campbell's Co (7.19%)

• PriceSmart Inc (6.63%)

• Cal-Maine Foods Inc (5.42%)

• Freshpet Inc (5.16%)

• The Chefs' Warehouse Inc (4.76%)

• The Vita Coco Co Inc (3.98%)

• Interparfums Inc (3.70%)

• WD-40 Co (3.60%)

Pros

• The fund shows a "good" erosion-risk rating.

• Total returns have been positive over the one-year, three-year, and five-year periods.

Cons

• The three-year price return has been slightly negative (-0.31%).

Beginner takeaway

When looking at PSCC, it is important to distinguish between price return and total return. While the share price may move up or down, the total return tells a fuller story by including the cash distributions paid to you. Always remember that a distribution yield shows how much cash is being paid out, but it does not guarantee that the share price will stay the same.