Led by Questcor (NasdaqGM: QCOR), which is PSCH’s largest holding at 5.15% of the fund’s weight, three stocks combining for 6.4% of the ETF’s appear on Bespoke’s rising 50-day moving average list. The lists are “based on the average percent spread between the intraday high and low over the last 50 days,” according to Bespoke.
The nine PSCH constituents on the 50-day average falling list combine for nearly 10% of the ETF’s weight, led by Medidata Solutions (NasdaqGM: MDSO). Medidata is PSCH’s fourth-largest holding with an allocation of almost 4.2%.
Bottom line: With a portfolio comprised of 75.3% small-cap growth names with an average market cap of less than $2 billion, it is not surprising some of PSCH’s 65 holdings reside on the more volatile side of the ledger. However, that does not diminish the fund’s potential for out-performance, particularly in environment where biotech is in favor.
PowerShares S&P SmallCap Health Care Portfolio