PSCD: INVESCO S&P SMALLCAP CONSUMER DISCRETIONARY ETF
Understanding the Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)
The Invesco S&P SmallCap Consumer Discretionary ETF (ticker: PSCD) is designed to track the performance of smaller companies in the consumer discretionary sector. This sector generally includes businesses that sell goods and services that people choose to buy, such as clothing, travel, and entertainment.
What this ETF is trying to do
PSCD focuses on "small-cap" companies. These are businesses that are typically smaller in size compared to giant corporations. By investing in the consumer discretionary space, the fund aims to provide exposure to smaller companies that benefit when consumers have extra money to spend on non-essential items.
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and distributions).
• Year-to-Date (YTD): The price return is approximately 2.64%, while the total return is approximately 3.47%.
• One-Year: The price return was approximately 0.90%, while the total return was approximately 1.98%.
• Three-Year: The price return was approximately 31.20%, while the total return was approximately 35.76%.
The estimated price from roughly one year ago was $106.60, compared to the current price of $107.55.
Income and distribution explanation
This ETF provides cash distributions to investors. The current distribution yield is approximately 1.07%. This means the cash paid out relative to the ETF's price is about 1.07%. The fund usually pays these distributions on a quarterly basis, 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 some of the top holdings in the portfolio (note that this list is partial):
• Carmax Inc (KMX): 3.45%
• Life Time Group Holdings Inc (LTH): 3.45%
• Victoria's Secret & Co (VSXY): 3.23%
• Mohawk Industries Inc (MHK): 2.84%
• Etsy Inc (ETSY): 2.75%
Pros
• Positive Returns: The fund has shown positive price and total returns over the one-year and three-year periods.
• Stable Risk Profile: The erosion-risk score suggests the price trend has been relatively stable.
Cons
• Small-Cap Volatility: Small companies can sometimes be more volatile than larger ones.
• Lower Yield: The distribution yield is relatively low at approximately 1.07%.
Beginner takeaway
PSCD offers a way to invest in smaller companies that sell consumer goods. While it provides some income through quarterly distributions, the main growth has come from its price returns. Always remember that a distribution yield tells you about cash payments, but it does not represent the total amount an investor earns.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | CARMAX INC | KMX | 3.45% |
| 2 | LIFE TIME GROUP HOLDINGS INC | LTH | 3.45% |
| 3 | VICTORIA'S SECRET & CO | VSXY | 3.23% |
| 4 | MOHAWK INDUSTRIES INC | MHK | 2.84% |
| 5 | ETSY INC | ETSY | 2.75% |
| 6 | CAESARS ENTERTAINMENT INC | CZR | 2.68% |
| 7 | POOL CORP | POOL | 2.60% |
| 8 | LKQ CORP | LKQ | 2.56% |
| 9 | FRONTDOOR INC | FTDR | 2.36% |
| 10 | THE CHEESECAKE FACTORY INC | CAKE | 2.22% |