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.

Related: Checking Up on Health Care ETFs Ahead of 2018

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.

Small-Cap Healthcare ETF is Outperforming Peers 2Since 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.

Small-Cap Healthcare ETF is Outperforming Peers 3

Relative to its peers, PSCH has been outperforming in all benchmarks within the past five years, particularly in the first half of 2018.