ETF Evaluator: Invesco S&P SmallCap Energy ETF (PSCE) Follow This ETF

Invesco S&P SmallCap Energy ETF Overview

Invesco S&P SmallCap Energy ETF (PSCE) is a passively managed Sector Equity Equity Energy exchange-traded fund (ETF). Invesco launched the ETF in 2010.

The investment seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Energy Index (the "underlying index"). The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “index provider”) compiles, maintains and calculates the underlying index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the energy sector, as defined by the Global Industry Classification Standard (“GICS ® ”). It is non-diversified.

About Invesco S&P SmallCap Energy ETF (PSCE)

There are 3 members of the management team with an average tenure of 13.00 years: Peter Hubbard (2010), Michael Jeanette (2010) and Pratik Doshi (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P Composite 1500 TR USD index with a weighting of 100% and S&P Small 600 Capped Energy TR USD index with a weighting of 100%. Invesco S&P SmallCap Energy ETF has 32 securities in its portfolio. The top 10 holdings constitute 56.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco S&P SmallCap Energy ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Invesco S&P SmallCap Energy ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 100.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco S&P SmallCap Energy ETF has -0.0% of the portfolio in cash.

Assets Under Management

The fund has $98 million in total assets, which is below the $1 billion average for the Equity Energy category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PSCE Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco S&P SmallCap Energy ETF expense ratio is below average compared to funds in the Equity Energy category. Invesco S&P SmallCap Energy ETF has an expense ratio of 0.29%, which is 48% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco S&P SmallCap Energy ETF has a portfolio turnover rate of 31%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 23% for the Equity Energy category.

Recently, in the month of June 2026, Invesco S&P SmallCap Energy ETF returned -5.6%, which earned it a grade of D, as the Equity Energy category had an average return of -4.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco S&P SmallCap Energy ETF has a trailing yield of 2.33%, which is below the 2.42% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco S&P SmallCap Energy ETF Grades

Year to date, the ETF has returned 29.6%, 9.1 percentage points better than the category, which translates into a grade of A. The fund has returned 45.4% over the past year (grade of A), 7.4% over the past three years (grade of F) and 8.7% per year over the past five years (grade of F) and -2.6% per year over the past 10 years (grade of F).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Invesco S&P SmallCap Energy ETF, including its riskiness, submit your email to unlock the rest of the article.