Invesco S&P SmallCap Materials ETF (PSCM) is an exchange-traded fund that seeks to track the performance of the S&P SmallCap 600 Capped Materials Index before fees and expenses. The fund normally invests at least 90% of its total assets in securities comprising the underlying index, which measures the overall performance of U.S. small-cap basic materials companies principally engaged in producing raw materials, including chemicals; metals and mining; containers, packaging, and construction materials; and paper and forest products. It employs a full replication technique, holding approximately 27-29 stocks such as Hecla Mining Company, Element Solutions Inc., Sealed Air Corporation, Balchem Corporation, and Celanese Corporation, with top holdings representing around 60% of the portfolio; the fund is rebalanced and reconstituted quarterly by S&P Dow Jones Indices LLC.
Launched on April 7, 2010, by Invesco Capital Management LLC as part of Invesco Exchange-Traded Fund Trust II, PSCM is domiciled in the United States with management oversight from a team including Peter Hubbard, and is listed on Nasdaq with a total expense ratio of 0.29%.
The ETF focuses exclusively on the U.S. small-cap materials sector, targeting growth and value stocks within the S&P SmallCap 600 universe screened for size, liquidity, and financial viability; it operates 100% in U.S. geographic allocation across subsectors like chemicals (57%), metals & mining (30%), containers & packaging (10%), and paper & forest products (2%).
No major strategic changes, such as acquisitions, partnerships, funding rounds, new product launches, or reorganizations, have been reported for PSCM in the last 1-2 years; the fund maintains its passive indexing approach with ongoing quarterly rebalancing and standard dividend distributions, including quarterly payouts in 2024 and 2025.