When you take the health care sector-specific S&P 500 Health Care Index with a year-to-date return of 5.23 percent and mix it with the S&P SmallCap 600 with a year-to-date return of 12.40 percent, you create an explosion of returns found in the Invesco S&P SmallCap Health Care ETF (NYSEArca: PSCH).
PSCH is the best performing ETF of the year up 36.65% YTD according to BarChart.com data (excluding leveraged, inverse and volatility products) as of Wednesday, July 11.
PSCH tracks the investment results of the S&P SmallCap 600® Capped Health Care Index with at least 90 percent of its assets allocated to common stocks of small cap health care companies providing healthcare-related products, as well as facilities and services, including biotechnology, pharmaceuticals, medical technology, and supplies. The index has been producing otherworldly returns with a year-to-date gain of 35.77 percent and 54.65 percent the past 12 months.
Since it tracks the S&P SmallCap 600® Capped Health Care Index, PSCH has been a prime beneficiary of its returns with 36.65% percent year-to-date gain and a 61.18 percent return the past year, according to BarChart.com. As such, it is moving well above its 200-day moving average evidenced in the chart below.
Relative to its peers, PSCH has been outperforming in all benchmarks within the past five years, particularly in the first half of 2018.