The technology sector is rebounding this year. So are small-cap stocks and exchange traded funds. Those themes are good news for the Invesco S&P SmallCap Information Technology (NASDAQ: PSCT), which is higher by nearly 21% this year.
PSCT tracks the S&P SmallCap 600 Capped Information Technology Index. While the various sector-specific ETFs provide broad exposure to their targeted segments, investors should keep in mind that there are differences in the different ETF offerings.
“The Index is designed to measure the overall performance of common stocks of US information technology companies. These companies are principally engaged in the business of providing information technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors and communication technologies,” according to Invesco, the fourth-largest U.S. ETF issuer.
Small-cap tech stocks “are the upstarts in the tech world. They are where all the disruption and the new ideas start. They also feed into the bigger FAANG stocks and help drive mega trends even further,” according to Banyan Hill Publishing.
Inside PSCT ETF
The technology sector continues to grow through innovation as more shift to cloud, progress into artificial intelligence and adopt internet of all things devices.
The $336 million PSCT is home to 89 stocks with an average market value of $1.53 billion. Electronic components and equipment makers and semiconductor manufacturers combine for almost 56% of PSCT’s roster.