PowerShares S&P SmallCap Materials Portfolio (PSCM) is an exchange-traded fund that seeks to track the investment results of the S&P SmallCap 600 Capped Materials Index. The fund invests at least 90% of its total assets in the securities of small-capitalization companies in the materials sector.
The materials sector includes companies involved in the production or distribution of raw materials, such as chemicals, construction materials, and packaging products. The index includes companies with market capitalizations between $100 million and $1.5 billion, and uses a modified market capitalization weighting methodology.
PSCM offers investors exposure to a diversified portfolio of small-cap materials companies, which may provide the potential for greater capital appreciation but also carry greater risk than larger, more established companies. The fund has a relatively low expense ratio compared to other small-cap materials ETFs, making it an attractive option for investors looking to invest in this sector.
As with any investment, there are risks to consider. Investing in small-cap companies can be more volatile and subject to greater price fluctuations than larger, more established companies. Additionally, the materials sector can be affected by changes in commodity prices, global economic conditions, and environmental regulations.
Overall, PSCM may be a suitable investment for investors seeking exposure to the small-cap materials sector. As with any investment, it is important for investors to carefully consider their investment objectives, risk tolerance, and investment time horizon before investing. Investors should also conduct their own research and consult with a financial advisor before making any investment decisions.
|
