What this ETF is trying to do

The Invesco S&P Smallcap Utilities & Communication Services ETF (ticker: PSCU) is designed to invest in smaller companies within the utilities and communication services sectors. This ETF focuses on a specific part of the market, providing exposure to companies that handle things like energy, water, and communication technologies.

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 YTD price return is approximately 4.11%, while the YTD total return is approximately 4.59%.

• One-Year: The one-year price return was approximately 2.51%, and the one-year total return was approximately 3.39%.

• Three-Year: Over the last three years, the price return was approximately 22.80%, while the total return was approximately 26.64%.

• Five-Year: The five-year total return was approximately -4.32%.

The current price is $59.87. An estimated price from roughly one year ago was approximately $58.41.

Income and distribution explanation

This ETF provides some level of cash income through distributions. The current distribution yield is approximately 0.86%. This number describes the cash distributions relative to the ETF's price. The trailing distributions were approximately $0.51 per share.

The fund usually pays out on a quarterly basis, with 4 payments recorded over the last 12 months. It is important to remember that a distribution yield is not the same as total return, and receiving cash distributions does not guarantee that the share price will stay the same.

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):

• Match Group Inc: 9.58%

• Madison Square Garden Sports Corp Class A: 6.83%

• Lumen Technologies Inc: 6.06%

• The Trade Desk Inc Class A: 5.63%

• Iridium Communications Inc: 5.16%

• Versant Media Group Inc Class A: 4.65%

• MDU Resources Group Inc: 3.91%

• Sphere Entertainment Co Class A: 3.84%

• Otter Tail Corp: 3.79%

• Clearway Energy Inc Class C: 3.72%

Holdings can change over time.

Pros

• The ETF shows a "good" erosion-risk rating, suggesting price stability according to the supplied score.

• It provides both share-price growth and cash distributions over several one-year and three-year periods.

Cons

• The five-year total return has been negative (approximately -4.32%).

• The distribution yield is relatively low at approximately 0.86%.

Beginner takeaway

PSCU focuses on small companies in the utilities and communications sectors. While it has shown positive total returns over the last three years, its five-year history shows a decline. Investors should remember that price returns and total returns are different, and high yields (though not present here) do not always mean an investment is growing.