ETF Education Report: Invesco S&P SmallCap Materials ETF (PSCM)

What this ETF is trying to do

The Invesco S&P SmallCap Materials ETF (ticker: PSCM) is an exchange-traded fund that focuses on small companies within the materials sector. This means it invests in businesses that provide the raw ingredients used to make many products, such as chemicals and metals.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the price change plus any cash paid out to investors).

Based on the data provided:

• Year-to-Date (YTD): The price return is approximately 12.55%, while the total return is approximately 13.41%.

• One Year: The price return was approximately 23.26%, and the total return was approximately 24.63%.

• Three Year: The price return was approximately 52.03%, and the total return was approximately 56.89%.

To visualize this, we can look at the estimated price from roughly one year ago, which was $76.77. The current price is $94.62.

Income and distribution explanation

Some investors look for "income," which is cash paid out by the ETF. This is called a distribution. PSCM has a distribution yield of approximately 1.09%. This number describes the cash distributions relative to the current ETF price.

The fund usually pays these out quarterly, and it has made 4 payments over the last 12 months. It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an erosion-risk score to help monitor this.

For PSCM, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

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

• Element Solutions Inc (10.86%)

• Eastman Chemical Co (10.33%)

• Sensient Technologies Corp (7.50%)

• Balchem Corp (7.23%)

• Warrior Met Coal Inc (6.55%)

• Celanese Corp Class A (4.93%)

• Materion Corp (4.63%)

• H.B. Fuller Co (4.03%)

• Century Aluminum Co (3.82%)

• Hawkins Inc (3.82%)

Holdings can change over time. This data was last updated on October 11, 2026.

Pros

• The fund has shown positive price returns and total returns over the one-year and three-year periods.

• The erosion-risk measurement is rated as "good."

Cons

• The distribution yield (1.09%) is relatively low compared to some other types of income-focused funds.

Beginner takeaway

When studying PSCM, notice the difference between price return and total return. The total return is higher because it includes the cash distributions paid to investors. Always remember that while distributions provide cash, they do not guarantee that the share price will stay the same or grow.