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This ETF is one of many in the Materials ETFdb Category, offering exposure to the U.S. materials sector, a corner of the domestic stock market that may have appeal to investors looking to gain indirect exposure to commodity prices through the stocks of companies engaged in the extraction or production of natural resources. Because the materials sector generally accounts for a relatively small allocation within broad-based equity ETFs, some investors may be interested in adding this ETF to a long-term portfolio. PSCM may also be useful for establishing a tactical tilt towards the materials sector, and can be useful as part of a sector rotation strategy.
Unlike most of the other materials ETFs available to U.S. investors, PSCM focuses primarily on small cap stocks; funds such as XLB are generally dominated by large cap stocks in comparison. While these groups of companies are impacted by many of the same factors, there can be some significant differences in the risk/return profiles as well; small caps will generally feature greater volatility, but may offer greater potential for capital appreciation over the long run.
The small cap approach may have other benefits as well. PSCM, for example, features a relatively balanced portfolio; no one stocks accounts for a huge percentage of assets. XLB, on the other hand, has close to 10% of its assets in a handful of different stocks, and the top ten components account for well more than half of the total portfolio. For investors looking to establish materials exposure, this ETF is worth a close look; the balance of holdings and efficient cost structure make it one of many good options out there.
The adjacent table gives investors an individual Realtime Rating for PSCM on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Materials with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.
Fact sheets are issued by the ETF provider and framed by ETFdb.com. Information contained within the fact sheet is not guaranteed to be timely or accurate.
Copyright MSCI ESG Research LLC [2018]. All Rights Reserved. MSCI ESG Research LLC’s (“MSCI ESG”) Fund Metrics products (the “Information”) provide environmental, social and governance data with respect to underlying securities within more than 23,000 multi-asset class Mutual Funds and ETFs globally. MSCI ESG is a Registered Investment Adviser under the Investment Advisers Act of 1940. MSCI ESG materials have not been submitted, to nor received approval from, the US SEC or any other regulatory body. None of the information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. All Information is provided solely for your internal use, and may not be reproduced or redisseminated in any form without express prior written permission from MSCI. Neither MSCI ESG nor any of its affiliates or any third party involved in or related to creating any Information makes any express or implied warranties, representations or guarantees, and in no event will MSCI ESG or any such affiliate or third party have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) relating to any Information. More information on MSCI ESG Fund Metrics, provided by MSCI ESG Research LLC, can be found at https://www.msci.com/esg-fund-metrics.
Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please see disclaimer.
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