Invesco S&P SmallCap Information Technology ETF (NASDAQ: PSCT)

에 대한 최신 뉴스 Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT)

Invesco S&P SmallCap Information Technology ETF

Technology

Industrials

Communication Services

The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. information technology companies that comprise the underlying index. 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.

Sps Commerce Inc

Fabrinet

Insight Enterprises Inc

Badger Meter, Inc.

Marathon Patent Group Inc.

Itron Inc

Aci Worldwide Inc

Sanmina Corp

Advanced Energy Industries, Inc.

Box Inc

Broad U.S. Equity ETFs

Specialty ETFs

Small Cap Analysis

Small Cap

Exclusives

Trading Ideas

Interview

ETFs

AVSC

PSCT

SPSC

VTWO

최근 벤징가(Benzinga)와의 독점 인터뷰에서 러셀 인베스트먼트(Russell Investments)의 북미 최고 투자 전략가인 폴 아이텔만(Paul Eitelman)은 경제적 불확실성 속에서 눈에 띄는 소형주 부문에 대한 통찰력을 제공했다.

단독: 러셀의 전략가가 낮은 금리 환경에서 기회를 잡으며 최고의 소형주들을 발견

INVSC S&P SMALL TECH PORT ETF

In a recent exclusive interview with Benzinga, Paul Eitelman, chief investment strategist for North America at Russell Investments, provided insights into the sectors of small-cap stocks that stand out <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">amidst economic uncertainty</a>.
While small-caps as a whole face some macroeconomic risks, Eitelman highlights several specific sectors that could offer substantial opportunities.
<h1 class="wp-block-heading">Where Small-Cap Managers Are Finding Opportunities</h1>
Eitelman notes that &#8220;dedicated small-cap managers are finding opportunities to tilt their portfolio strategies toward banks, technology and select highly indebted companies that are likely to benefit from lower interest rates going forward.&#8221; These sectors are positioned to thrive, especially as interest rates begin to decline.
Technology continues to dominate market discussions, and small-cap tech companies could be key beneficiaries of economic shifts, particularly those aligned with innovative growth areas like AI and data services.
The Russell 2000 index is one of the more popular indices tracking small cap U.S. equity. ETFs that track this index include the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), the Vanguard Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTWO#NYSE">VTWO</a>) and the Avantis US Small Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVSC#NYSE">AVSC</a>). The Invesco S&amp;P SmallCap Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCT#NYSE">PSCT</a>) is a lesser-known but technology-focused ETF tracking small cap companies. The top 3 holdings of this ETF are Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>), SPS Commerce, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) and Badger Meter Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>).
Read Also: <a href="https://www.benzinga.com/news/24/08/40423157/small-cap-ai-stocks-on-the-rise-3-hidden-gems-you-shouldnt-miss">Small-Cap AI Stocks On The Rise: 3 Hidden Gems You Shouldn&#8217;t Miss</a>
<h1 class="wp-block-heading">Stock Selection: Primary Driver Of Risk, Return</h1>
However, Eitelman cautions that given the high macroeconomic uncertainty, broad sector bets are risky. He recommends a more refined approach: "Our preference into high macro uncertainty is to target only modest sector tilts and let stock selection shine as the primary driver of risk and return."
This focus on stock selection over aggressive sector rotation makes sense in an environment where not all companies are equally positioned to navigate fluctuating interest rates or economic slowdowns. 
Banks, for example, are likely to benefit from a soft landing scenario, while indebted companies could see relief as rates fall. Tech remains a favorite sector due to its long-term growth prospects, even amid near-term uncertainty.
Overall, Eitelman's strategy emphasizes precision and caution, advising investors to prioritize stock-picking and avoid broad over-exposure in the small-cap space.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40749609/this-small-cap-top-pick-is-positioned-for-strong-gains-jpmorgan-sees-over-50-upside">This Small Cap &#8216;Top Pick&#8217; Is Positioned For Strong Gains, JPMorgan Sees Over 50% Upside</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
Photo: Borka Kiss via Shutterstock

EXCLUSIVE: Russell Strategist Uncovers Top Small-Cap Picks — Seizing Opportunities In A Low-Rate Environment

DXC Technology Company&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXC#NYSE">DXC</a>) announced a collaboration with ECARX Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ECX#NASDAQ">ECX</a>) to expedite the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39471523/dxc-luxoft-and-ecarx-partnership-boosts-advanced-innovation-capabilities-for-automotive-manufactur" rel="noreferrer noopener">advancement of in-vehicle functionalities</a>.
This partnership will enhance infotainment systems, digital cockpits, and advanced driver assistance systems, ultimately improving drivers&#8217; user experiences.
Both companies collaborate to enhance product and platform development in response to rapid industry changes.
ECARX will bolster its full-stack hardware and software offerings with DXC Luxoft&#8217;s software integration and engineering expertise and its ability to deliver customized solutions for automotive OEMs.
The new partnership aims to streamline the integration of software-defined vehicle capabilities for automotive OEMs, enabling the development of solutions that offer innovative user experiences. This includes seamless access to a full ecosystem of apps and intelligent AI-powered voice assistants for drivers.
Peter Cirino, Chief Operating Officer, ECARX, said, &#8220;This will bring automotive OEMs more software independence and business growth by enabling them, in collaboration with DXC Luxoft, to develop software solutions on ECARX&#8217;s industry-leading stack.&#8221;
Luz G. Mauch, Executive Vice President of DXC Luxoft Automotive, said, &#8220;Automotive OEMs need to be able to leverage the very latest advancements in the industry in order to offer a unique user experience.&#8221;
&#8220;Through this collaboration between ECARX and DXC Luxoft, our clients will have the ability to build unique software and interfaces, and accelerate the transformation to software-defined vehicles.&#8221;
Last month, DXC reported adjusted EPS of 97 cents, beating analyst estimates of 83 cents and sales of $3.38 billion, beating <a target="_blank" href="https://www.benzinga.com/news/24/05/38899845/why-is-dxc-technology-stock-tumbling-friday" rel="noreferrer noopener">analyst estimates of $3.36 billion</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Information Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCT#NASDAQ">PSCT</a>) and Pacer US Small Cap Cash Cows 100 ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/CALF#BATS">CALF</a>).
Price Action: DXC shares closed lower by 0.80% at $18.59 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Mid Cap

News

Contracts

CALF

DXC And ECARX Forge Path For Next-Gen Automotive Solutions: Details

Advanced Energy Industries, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEIS#NASDAQ">AEIS</a>) disclosed a possible offer&nbsp;to acquire the entire issued and to be issued shares of&nbsp;XP Power Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/XPPLF#OTC">XPPLF</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38931892/advanced-energy-announces-possible-all-cash-offer-to-acquire-xp-power-limited" rel="noreferrer noopener">for&nbsp;£19.50 per share in cash</a>.
The proposal reflects a 68% premium to XP Power&#8217;s closing share price of £11.64 as of May 20, 2024 (the last business day before this announcement) and an 82% premium to 30-trading day volume weighted average price of £10.74 as of May 20.
Also, the proposal reflects a 76% premium to XP Power&#8217;s closing share price on the trading day before&nbsp;the May 7 proposal of £19.50 per share was submitted&nbsp;to the XP Power board.
The total proposed consideration is £571 million, which is based on the diluted ordinary share count of 24.0 million, net debt of £103.4 million (as of March 31, 2024), and no further dividends to be declared or paid after this announcement. 
Earlier, the company had submitted three all-cash proposals to the company, which the Board of XP Power rejected.&nbsp;
On November 5, 2023, the company offered £18.50 per share in cash, valuing XP Power&#8217;s equity at £369 million.
Steve Kelley, the president and CEO of Advanced&nbsp;Energy&nbsp;said, &#8220;We believe that the proposed offer for XP Power provides compelling value for both Advanced&nbsp;Energy&#8217;s&nbsp;and XP Power&#8217;s shareholders. By expanding our portfolio of products and&nbsp;technologies,&nbsp;and combining our technical capabilities, we believe we will be better able to meet the growing needs of our customers.&#8221;
As of March 31, 2024, cash and cash equivalent&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38564062/advanced-energy-reports-first-quarter-2024-results" rel="noreferrer noopener">stood at $1.02 billion</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Information Technology ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCT#NASDAQ">PSCT</a>) and&nbsp;Mid Cap&nbsp;US Equity Select ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RNMC#NASDAQ">RNMC</a>).
Price Action: AEIS shares closed higher by 2.13% at $107.88 on Monday.
Photo via Shutterstock

AEIS

RNMC

XPPLF

Advanced Energy Discloses New Offer To Acquire XP Power; Is The Latest Proposal Enticing Enough?

Badger Meter, Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>) reported fiscal first-quarter 2024 sales growth of 23% year-on-year to $196.3 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38312531/badger-meter-reports-record-first-quarter-2024-financial-results" rel="noreferrer noopener">consensus of $182.3 million</a>.&nbsp;
EPS of $0.99 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $0.82</a>. The stock price climbed after the results.
Utility water sales increased 29% year over year, reflecting continued customer adoption across its broad and expanding portfolio of smart water solutions, which encompasses its cellular AMI offering, including ORION Cellular endpoints and BEACON Software as a Service (SaaS) revenues, coupled with increased water meter volumes, including E-Series Ultrasonic meters.
Sales of flow instrumentation products declined 3% year over year, compared to a difficult prior-year comparison, which benefited from backlog conversion and improved supply chain dynamics.
The gross margin decreased by 16 basis points to 39.3%, reflecting the continued benefits of a favorable sales mix and higher volumes.
The operating margin improved 289 basis points to 18.6%.&nbsp;
The company held $199.3 million in cash and equivalents as of March 31, 2024, and generated $21.5 million in operating cash flow.
Badger Meter stock gained over 46% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Tidal ETF Trust Newday Ocean Health ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHOY#NYSE">AHOY</a>) and&nbsp;Invesco S&amp;P SmallCap Information Technology ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCT#NASDAQ">PSCT</a>).
Price Action: BMI shares are up 15.8% at $177.24 on the last check Thursday.
Image: Kiều Trường from Pixabay

Earnings

Movers

AHOY

What's Going On With Badger Meter Stock Thursday?

These are go-go days for small-cap stocks and the related exchange-traded funds. The widely followed Russell 2000 Index jumped 18.29% in November, good for its best monthly performance on record.
On Tuesday, the first trading day of December, nearly a dozen small-cap ETFs hit all-time highs. Some market observers believe recent small stock bullishness is more a start than a finish. In fact, Jefferies sees small caps, backed by 40% earnings growth, <a href="https://www.cnbc.com/2020/12/01/wall-streets-no-1-small-cap-strategist-hasnt-been-this-bullish-in-years-sees-12percent-gain-in-2021.html">topping large-cap</a> names next year.
With December looking it will be kind to stocks and with the aforementioned tailwinds in place for 2021, investors may want to consider any and all of the following small-cap ETFs over the near-term.
Invesco S&amp;P SmallCap Information Technology ETF (PSCT)
The Invesco S&amp;P SmallCap Information Technology ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/psct#NASDAQ">PSCT</a>) is one of the small-cap ETFs that hit an all-time high Tuesday, adding to a run that&#39;s seen the Invesco fund surge 23.66% over the past month.
PSCT, which tracks the S&amp;P SmallCap 600 Capped Information Technology Index, holds 74 stocks, about half of which are semiconductor or software names. Combine those alluring industry exposures with an <a href="https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-PSCT">average market capitalization</a> of $1.82 billion and it&#39;s not a stretch to say if mergers and acquisitions heat up next year, some PSCT holdings will be picked off, boosting the fund in the process.
WisdomTree U.S. SmallCap Dividend Fund (DES)
Small caps aren&#39;t often thought of as dividend destinations and the S&amp;P SmallCap 600 Index came under considerable dividend duress alongside the S&amp;P 500 earlier this year at the hands of the coronavirus pandemic. However, the WisdomTree U.S. SmallCap Dividend Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/des#NYSE">DES</a>) is in recovery/rally mode.
The fund is higher by 16.23% over the past month, good for one of the best showings among all dividend ETFs. DES yields 3.38%, roughly double the dividend yield on the S&amp;P SmallCap 600.
DES is an avenue for investors to generate income while positioning for a more extensive cyclical rebound because the financial services, industrial, real estate and materials sectors combine for two-thirds of the fund&#39;s roster.
IQ Chaikin U.S. Small Cap ETF (CSML)
The IQ Chaikin U.S. Small Cap ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/csml#NASDAQ">CSML</a>) is a hidden gem among small-cap ETFs, though up more than 20% over the past month, perhaps it shouldn&#39;t be hidden. CSML follows the NASDAQ Chaikin Power U.S. Small Cap Index and is a quantitative strategy rooted in the application of 20 factors spanning both fundamental and technical analysis.
None of the fund&#39;s components exceed weights of 0.50% and CSML doesn&#39;t lean too heavily toward either growth or value stocks as its top five sector weights, which combine for 79% of the fund, span both growth and value.
Disclosure: The author owns shares of DES.

Long Ideas

Sector ETFs

CSML

WisdomTree Trust WisdomTree SmallCap Dividend

3 Sizzling Small-Cap ETFs To Embrace Ahead Of 2021

Small-cap stocks are lagging their larger peers to start 2017, but there are some corners of the small-cap that are outpacing broader small stock benchmarks. The popular Russell 2000 Index and the S&amp;P SmallCap 600 Index up an average of 2.2 percent year-to-date, but investors could be doing better with more tactical, sector plays.
For example, the PowerShares S&amp;P SmallCap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) is higher by 5.5 percent year-to-date. PSCT debuted nearly seven years ago and is seen as the <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/03/9177795/big-names-arent-big-in-this-tech-etf-but-big-returns-are">small-cap competitor</a> to the widely followed Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>), the largest technology exchange-traded fund by assets.
<h3>Peeking At PSCT</h3>
PSCT follows the S&amp;P SmallCap 600 Capped Information Technology Index, which is the technology offshoot of the widely followed S&amp;P SmallCap 600.
Although it is small-caps ETF tracking a sector that often trades at above average valuations, PSCT&#39;s price-to-earnings ratio of just over 23 is not alarmingly high. PSCT&#39;s price-to-book ratio is 2.64.
Based on AltaVista&#39;s 2017 estimates, XLK should carry a price-to-earnings ratio of 17.9, just under the P/E of 18 the research firm has on the S&amp;P 500. While that doesn&#39;t necessarily qualify as a &ldquo;deep discount,&rdquo; only XLK&#39;s financial services and healthcare counterparts are less expensive.
<h3>Index And Allocations</h3>
PSCT&#39;s underlying index holds companies &ldquo;engaged in the business of providing information technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors and communication technologies,&rdquo; according to PowerShares.
Nearly 29 percent of PSCT&#39;s lineup is allocated to electronic equipment and components makers with another 19.1 percent devoted to software companies. Semiconductor and IT services providers combine for over 31 percent of the ETF&#39;s weight. The<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSCT"> ETF holds 88 stocks</a>, almost 52 percent of which are considered small-cap growth names. Nearly a third of PSCT&#39;s lineup are considered small-cap blend names.
Since coming to market, PSCT has topped the S&amp;P SmallCap 600 Index by about 240 basis points, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSCT&amp;ticker=PSCT&amp;title=powershares-s-p-smallcap-information-technology-portfolio">according to PowerShares data</a>.
Investors have recently displayed some enthusiasm for PSCT. In September, the ETF <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/09/8498095/small-can-work-with-tech-etfs">had $481 million in assets under management</a>, a number that has since jumped to $622 million. In just the past week, PSCT has seen inflows of nearly $55 million.
Related Link:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/03/9189264/a-fundamentally-sound-small-cap-etf">A Fundamentally Sound Small-Cap ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/03/9183743/an-interesting-longshort-sector-etf-trade-idea">An Interesting Long/Short Sector ETF Trade Idea</a>

Markets

Tech

A Small-Cap Sector ETF That's Working

When it comes to exchange-traded funds tracking the technology sector, the largest sector weight in the S&amp;P 500, the funds that command the most attention are large-cap products heavy on familiar stocks such as Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) and Microsoft Corporation (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>).
However, as is the case with broader small-cap funds, a small-cap technology ETF can help risk-tolerant investors bolster returns. That is what the PowerShares S&amp;P SmlCp Inftn Thgy Pfo (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) is doing this year. PSCT is seen as the small-cap answer to the popular Technology SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>).
<h3>Great Things Come In Little Packages</h3>
The PowerShares offering is not a fresh face. Now more than six years old, PSCT has a more than adequate track record investors can use to assess the fund. Additionally, this is not a flash in the pan ETF. PSCT, which holds nearly 100 stocks, is home to nearly $481 million in assets under management.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/09/8498016/evaluating-a-pair-of-multi-factor-etfs">Evaluating A Pair Of Multi-Factor ETfs</a></bzrelatedlink>
PSCT is up more than 20 percent year compared to a gain of 11.8 percent for XLK and some analysts believe small-cap tech names are poised to keep that out-performance going. As <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/08/8405569/small-cap-tech-names-to-outperform-says-turning-point-an">Benzinga reported</a> at the end of August, Turning Point argued small-cap tech stocks are well-positioned to continue to outperform the rest of the tech sector.
So far this year, the Russell 2000 TECH Index is up 13 percent, more than double the 6 percent gain of the S&amp;P 500. Since crude oil bottomed on February 11, the Russell 2000 TECH is up 38 percent, while the NDX, TPA BIGTECH, Russell 200 and Russell 1000 TECH indices are up 20, 28, 29 and 24 percent, respectively.
<h3>Young, But Effective</h3>
Since coming to market, PSCT has topped the S&amp;P SmallCap 600 Index by nearly 200 basis points, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSCT&amp;ticker=PSCT&amp;title=powershares-s-p-smallcap-information-technology-portfolio">according to PowerShares data</a>.&nbsp;
PSCT tracks the S&amp;P SmallCap 600 Capped Information Technology Index, which holds companies &ldquo;engaged in the business of providing information technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors and communication technologies,&rdquo; according to PowerShares.
Nearly 28 percent of PSCT&#39;s lineup is allocated to electronic equipment and components makers with another 20.8 percent devoted to software companies. Semiconductor and IT services providers combine for over 29 percent of the ETF&#39;s weight.
PSCT has added nearly $56 million in new assets over the past month, a healthy percentage of its current assets under management tally and a total exceeded by just four other PowerShares ETFs.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

AAPL

MSFT

Small Can Work With Tech ETFs

Forget FANG. According to Turning Point Analytics, small-cap tech is the place to be.
In a new report, Turning Point argued small-cap tech stocks are well-positioned to continue to outperform the rest of the tech sector. So far this year, the Russell 2000 TECH Index is up 13 percent, more than double the 6 percent gain of the S&amp;P 500.
Since crude oil bottomed on February 11, the Russell 2000 TECH is up 38 percent, while the NDX, TPA BIGTECH, Russell 200 and Russell 1000 TECH indices are up 20, 28, 29 and 24 percent, respectively.
Turning Point warns traders that small-cap tech may be overbought in the near term, but there is plenty of room for outperformance in the months ahead.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/08/8401507/keep-an-eye-on-this-key-technical-level-for-oil-heading-">Keep An Eye On This Key Technical Level For Oil Heading Into The Election</a></bzrelatedlink>
The firm points to a long-term chart of the Russell 2000 TECH/NASDAQ 100 to highlight just how much upside small caps have remaining.
<a href="https://www.benzinga.com/files/u81483/small_tech.png"><img alt="" src="/files/u81483/small_tech.png" style="width: 480px; height: 331px;" /></a>
&ldquo;Chart 6 shows the long term chart of Russell 2000 TECH/NASDAQ 100 and reveals that the bounce since February 2016 coincided perfectly with the lower extreme of a 16 year trading range,&rdquo; Turning Point explained. &ldquo;The top of that range is approximately 24 percent higher.&rdquo;
Traders looking to capitalize on the small-cap tech momentum should consider buying an ETF like the PowerShares S&amp;P SmlCp Inftn Thgy Pfo (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) and selling the Technology SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>).
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Analyst Color

Analyst Ratings

Small-Cap Tech Names To Outperform, Says Turning Point Analytics

Even against the backdrop of a stronger dollar, broadly speaking, small-cap stocks and the relevant exchange traded funds have been disappointments in 2015.

	Investors looking for opportunity in the world of small-cap ETFs have been forced to look for &ldquo;less bad&rdquo; rather than outright successful. Residing in the less bad category are some small-cap sector ETFs that have outperformed their more diverse counterparts. That group includes the PowerShares S&amp;P SmallCap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>).

	An easy way of explaining PSCT is that the ETF is the small-cap equivalent of the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>). PSCT tracks the S&amp;P SmallCap 600 Capped Information Technology Index, the technology offshoot of the widely followed S&amp;P SmallCap 600 Index.

	Companies found in PSCT&#39;s underlying index &ldquo;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,&rdquo;<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSCT"> according to PowerShares</a>, the fourth-larges U.S. ETF sponsor.

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5834764/tech-etfs-depend-heavily-on-apple-earnings">Tech ETFs Depend Heavily On Apple&#39;s Earnings</a>

	PSCT, an ETF that is home to 105 stocks with an average market value of almost $1.7 billion, putting it at the higher end of the small-cap spectrum, has recently outperformed broader small-cap benchmarks. For example, PSCT is down 3.1 percent over the past month, compared to a loss of nearly 4 percent for the Russell 2000 and 4.3 percent for the S&amp;P SmallCap 600. Those indexes have technology weightings of 17 percent and 16.1 percent, respectively.

	PSCT, which celebrated its fifth anniversary in April, offers investors exposure to seven technology sub-industry groups with the largest being a 25.7 percent allocation to electronic components and electric equipment makers. Semiconductor manufacturers and Internet-related companies combine for another 34.6 percent of PSCT&#39;s weight.

	What is truly important is that PSCT has outperformed the aforementioned broader small-cap indexes over long holding periods. For example, PSCT has doubled over the past five years, easily outpacing the Russell 2000 and the S&amp;P SmallCap 600 over that span. PSCT&#39;s price-to-earnings ratio is 19.6, slightly below that of the S&amp;P SmallCap 600 and slightly above that of the Russell 2000.

	Something also notable about PSCT is investors&#39; recent affinity for the fund. Over the past 30 days, investors have poured $94 million into PSCT, a sum that works out to be nearly a quarter of the ETF&#39;s current assets under management tally of $363.7 million. That is the top asset-gathering pace over that time of any PowerShares ETF, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">according to issuer data</a>.

Intraday Update

Going Small With A Technology ETF

The stock market continued to show tremendous resilience this week as better than expected GDP and strong earnings reports bolstered stocks.
The SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) moved higher on the last day of October, which coincided with a commitment by Japan&rsquo;s central bank to increase quantitative easing measures in an effort to revive their stagnant economy.

	On an intra-day basis, SPY retested its September highs and appears poised to extend its winning streak into the final months of the year.

	The following ETFs represent a sample of the best- and worst-performing funds over the last five trading sessions.
<h3>
	BEST: Small-Cap Technology Stocks</h3>

	Small-cap stocks have been overlooked for the majority of the year due to their underperformance versus large-cap peers. However, the October rally has been characterized by a return to risk assets that have favored beaten down sectors for a strong rebound.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/broad-u-s-equity-etfs/14/10/4967983/recent-quantitative-etfs-contend-against-established-favori">Recent Quantitative ETFs Contend Against Established Favorites</a></bzrelatedlink>

	The PowerShares S&amp;P Small Cap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) has been the beneficiary of positive earnings and momentum this week that catapulted it to the top of the ETF charts with a gain of more than 7 percent. PSCT tracks 111 small-growth stocks in the technology and electronics sector.

	Standout companies that helped drive gains in this ETF include Tyler Technologies&nbsp;and Maximus Inc. PSCT has $220 million in total assets and charges an expense ratio of 0.29 percent.
<h3>
	WORST: Gold Miners</h3>

	The price of gold bullion fell to new 2014 lows on Friday, which did significant damage to gold mining stocks. The Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>) fell 18 percent over the last five trading days as lower commodity prices continued to send investors heading for the exits.

	GDXJ tracks 63 small- and mid-capitalization gold and silver mining companies. These junior miners tend to be more sensitive to industry volatility and as such are experiencing the sharpest drop of the group. The large-cap focused Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) also fell to new year-to-date lows as well.

	The higher-than-average volume and bearish sentiment for gold stocks may indicate that a capitulation-style event is taking place. However, these stocks have yet to signal that a bottom is in place.

Market Vectors ETF Trust Market Vectors Gold Miners

GDXJ

Best And Worst ETFs Of The Week Amid Halloween Highs

The <a data-ls-seen="1" data-mce-href="http://www.dailygainsletter.com/technology-sector/" href="http://www.dailygainsletter.com/technology-sector/" target="_blank">technology sector</a> was my top growth area in 2013 and it has been since the reversal out of the recession. The euphoric buying in social media and Internet services stocks in 2013 obviously shows the immense upside price appreciation potential that lies in the technology sector.

	The NASDAQ recently broke above 4,200 to a 13-year high and is within 20% of its all-time high of just over 5,100, which it achieved during those crazy and irrational times in late 1999 and early 2000. But we all know what happened thereafter, when the Internet bubble burst.

	Also Read: <a data-mce-href="http://www.dailygainsletter.com/nyse-stock-market-holidays-schedule/" href="http://www.dailygainsletter.com/nyse-stock-market-holidays-schedule/">NYSE holidays 2014</a>

	Now, while we have seen some big-league moves in some of the mobile and social media stocks, the gains are still nowhere near the ridiculous moves made some 14 years ago in the technology sector. I recall some speculators becoming millionaires via buying technology penny stocks that really had no financial history, but these companies were able to cater to the greed in investors to propel the stock market higher.

	I doubt these times will surface again, but we will likely see glimpses when stocks rocket higher for no apparent reason except momentum.

	Following the Internet bubble, I thought we may not see 5,000 on the NASDAQ for years. But that time has arrived, as the NASDAQ may be set to reach this former pinnacle sometime in early 2015, as long as the investment climate remains positive for stocks.

	Take a look at the long-term chart of the NASDAQ below. Notice the record peak in March 2000, when stocks spiked higher.

	<a data-mce-href="http://www.dailygainsletter.com/files/2014/01/Nasdaq-Composite-Chart.jpg" href="http://www.dailygainsletter.com/files/2014/01/Nasdaq-Composite-Chart.jpg" target="_blank"><img alt="Nasdaq Composite Chart" data-mce-src="http://www.dailygainsletter.com/files/2014/01/Nasdaq-Composite-Chart.jpg" height="245" src="http://www.dailygainsletter.com/files/2014/01/Nasdaq-Composite-Chart.jpg" title="Nasdaq Composite Chart" width="550" /></a>

	Chart courtesy of www.StockCharts.com

	Since the technology sector imploded and the NASDAQ bottomed out in 2009, following the Great Recession, the index has been steadily rising. The trend on the NASDAQ from 2009 to now has been strong and bullish, as we enter the fifth year.

	Yet what concerns me is the lower trading volume on the NASDAQ during this most recent bull run. I still feel the index will end up higher this year, but at the same time, I would advise caution, since the NASDAQ is likely vulnerable to a selling spree.

	As we move along, the technology sector continues to be one of my top areas for buying opportunities; the technology sector is changing so rapidly, and we are constantly seeing new innovations and advanced technologies that will reward many companies in this space.

	My top areas for growth in the technology sector include mobility, Internet services, and social media.

	You want to find the innovators and companies that are not content with remaining status quo, but that are willing to always look for the next big technological breakthrough.

	While my approach is to always search out individual stocks, you can always play the technology sector via exchange-traded funds (ETFs) such as the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>), which holds some major companies, such as Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Google Inc. (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>), and Microsoft Corporation (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>).

	On the small-cap side, consider taking a look at PowerShares S&amp;P SmallCap Info Tech (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>).

	This article <a data-mce-href="http://www.dailygainsletter.com/stock-market/why-the-tech-sectors-at-the-top-of-my-2014-growth-list/2458/" href="http://www.dailygainsletter.com/stock-market/why-the-tech-sectors-at-the-top-of-my-2014-growth-list/2458/" target="_blank">Why the Tech Sector&rsquo;s at the Top of My 2014 Growth List</a> was originally published at <a data-mce-href="http://www.dailygainsletter.com/" href="http://www.dailygainsletter.com/" target="_blank">Daily Gains Letter</a>

GOOG

Why the Tech Sector's at the Top of My 2014 Growth List

On the surface, it would appear to be a disappointing year for technology sector ETFs. The Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) is up a mere 9.9 percent year-to-date, a performance that trails the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) by 670 basis points.

	Of the nine sector SPDRs ETFs, XLK ranks seventh on a year-to-date basis and is being kept out of the last place by the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) and the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the latter of which <a href="http://www.benzinga.com/markets/bonds/13/09/3883009/rising-rates-could-make-these-etfs-betray-seasonal-trends">has wilted in the face of rising interest rates</a>.

	What is disappointing about the performance of the cap-weighted, large cap-focused XLK is that when stripping out AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) to focus on the pure tech names among the ETF's top-10 holdings, five of the remaining eight names have traded higher this year. In fact, XLK is not even the best U.S. technology sector ETF issued by State Street Global Advisors. That honor goes to the SPDR Morgan Stanley Technology ETF (NYSE: <a class="ticker" href="/stock/mtk#NYSE">MTK</a>), which has returned 15.3 percent this year with some help from Facebook (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>) and Priceline.com (NASDAQ: <a class="ticker" href="/stock/pcln#NASDAQ">PCLN</a>).

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3749849/the-race-to-1-000-etf-youve-never-heard-of">The Race To $1,000 ETF You've Never Heard Of</a>.

	Still, it is possible to find market-beating U.S.-focused tech ETFs. Even when excluding the PowerShares S&amp;P SmallCap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>), has been <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/08/3855714/small-cap-tech-etf-merits-consideration">a stellar performer in its own right</a>, investors could have done this year with tech ETFs this year.

	The right tech ETFs that is. Some of this year's top tech ETFs share an important trait in common. These funds offer investors exposure to the increasingly prominent theme of <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/05/3587943/two-top-ideas-among-fundamentally-weighted-etfs">fundamental weighting methodologies</a>.

	Take the PowerShares Dynamic Technology Sector Portfolio (NYSE: <a class="ticker" href="/stock/ptf#NYSE">PTF</a>) as one example. PTF is weighted by factors including rice momentum, earnings momentum, quality, management action, and value. None of the ETF's 61 holdings account for more than 2.82 percent of the fund's weight. Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) is not a member of PTF's lineup, which is a good thing given that the stock has traded lower this year.

	However, PTF has gained 14.4 percent this year while also excluding Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) and Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>), just to name a pair of large-cap tech stocks that have performed well in 2013.

	Speaking of Apple, well-documented has been the stock's impact on various ETFs and how funds with excessive to the stock are vulnerable when Apple falls. Equal-weight ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2473809/blasphemy-equal-weight-apple-aapl-qqqe-ryt">avoid that conundrum</a>.

	The First Trust NASDAQ-100-Technology Sector Index Fund (NASDAQ: <a class="ticker" href="/stock/qtec#NASDAQ">QTEC</a>) and the Guggenheim S&amp;P 500 Equal Weight Technology ETF (NYSE: <a class="ticker" href="/stock/ryt#NYSE">RYT</a>) are up an average of 20.5 percent this year. Both funds feature scant allocations to Apple, but the same goes for their exposure to Google. RYT actually has a slightly larger weight to Yahoo (NASDAQ: <a class="ticker" href="/stock/yhoo#NASDAQ">YHOO</a>) than it does Google. RYT is up 21.6 this year, meaning it has topped Google by 260 basis points.

	The First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3284663/under-the-hood-a-better-way-to-tech">also eschews cap-weighting</a> in favor of a mix of growth and value factors, including price appreciation, sales to price and one year sales growth, book value to price, cash flow to price and return on assets.

	Apple happens to be FXL's largest holding at 2.3 percent of the fund's weight. The 1.35 percent allocation to Google is well below the weights given to 3D Systems (NYSE: <a class="ticker" href="/stock/ddd#NYSE">DDD</a>), Groupon (NASDAQ: <a class="ticker" href="/stock/grpn#NASDAQ">GRPN</a>) and Yahoo, just to name a few. The result is an ETF up 19.6 this year.

	Another thing these ETFs share in common is not none are particularly large, though three have over $100 million in assets under management. Combined, PTF, QTEC, RYT and FXL have about $707 million in AUM compared to $11.3 billion for XLK.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author does not own any of the securities mentioned here.

Short Ideas

GRPN

PCLN

Powershares Dynamic Technology Securitytor Portfolio

First Trust NASDAQ-100 Technology Index Fund

QTEC

Rydex ETF Trust Rydex S&P Equal Weight Technology ETF

YHOO

An Interesting Year For Tech ETFs

Large-cap technology ETFs such as the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) and the Vanguard Information Technology ETF (NYSE: <a class="ticker" href="/stock/vgt#NYSE">VGT</a>) are popular with investors for a variety of reasons. Both are cheap with annual expense ratios of 0.18 percent and 0.14 percent, respectively.

	Both funds are home to some of the most widely followed and held tech stocks such as Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>) and Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>).

	Investors would do well, maybe even better, to consider a small-cap technology ETF to augment their large-cap exposure. The PowerShares S&amp;P SmallCap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) is the fund to consider.

	"Small-cap ETFs saw inflows of $5 billion in July, while the broader information-technology sector took in $1.2 billion of new money," said S&amp;P Capital IQ in a new research note, citing BlackRock data.

	PSCT has been garnering some of those inflows. Since the fund <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3746668/under-the-hood-going-small-with-a-tech-etf">was spotlighted on July 11</a>, investors have poured nearly $25 million into the ETF, bringing its current assets under management tally to $177.5 million.

	S&amp;P Capital IQ, which rates PSCT Marketweight, said the ETF is "well-positioned based on our holdings analysis, and incurs relatively modest costs," while adding "PSCT is well-diversified at the holdings and industry level. The ETF offers exposure to 128 small-cap tech stocks."

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3820519/will-this-time-be-different-apple-back-to-dominating-tech-etf">Will This Time Be Different? Apple Back To Dominating Tech ETFs</a>.

	PSCT holdings include Advanced Energy (NASDAQ: <a class="ticker" href="/stock/aeis#NASDAQ">AEIS</a>) ATMI (NASDAQ: <a class="ticker" href="/stock/atmi#NASDAQ">ATMI</a>), Microsemi (NASDAQ: <a class="ticker" href="/stock/mscc#NASDAQ">MSCC</a>), MKS Instruments (NASDAQ: <a class="ticker" href="/stock/mksi#NASDAQ">MKSI</a>) and TriQuint Semiconductor (NASDAQ: <a class="ticker" href="/stock/tqnt#NASDAQ">TQNT</a>), all of which earn four-star ratings from S&amp;P Capital IQ. Those stocks combine for nearly six percent of the ETF's weight.

	S&amp;P Capital IQ also has five-star ratings on Q-Logic (NASDAQ: <a class="ticker" href="/stock/qlgc#NASDAQ">QLGC</a>) and Take-Two Interactive Software (NASDAQ: <a class="ticker" href="/stock/ttwo#NASDAQ">TTWO</a>). Those stocks combine for 2.4 percent of the ETF's weight.

	"Small caps, in general, have been on a tear this year, outperforming their larger peers. The broader S&amp;P SmallCap 600 Index, a measure of equities no larger than $4.1 billion, is higher by 22% this year through August 16, compared with nearly 16% for the large-cap S&amp;P 500 and 18% for the S&amp;P Mid-Cap 400. Info-tech small-cap stocks, however, have advanced 25% through August 16, supporting the view the theme has been popular recently," said S&amp;P Capital IQ in the note.

	Indeed, PSCT has been an impressive performer. Year-to-date, the fund is up 21.3 percent, more than double the returns offered by the large-cap focused XLK.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author owns none of the securities mentioned here.

ATMI

MKSI

MSCC

QLGC

TQNT

TTWO

Small-Cap Tech ETF Merits Consideration

The technology sector, the largest sector weight in the S&amp;P 500, has been a decent though not spectacular performer in 2013.

	Including Thursday's gains, the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) is up more than 10 percent this year, but investors could have more than twice as well with the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>), an ETF tracking a sector that is perceived to be far less volatile than tech.

	Even the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) has outpaced XLK by more than 800 basis points year-to-date. Tech's lethargy to this point does not mean the sector holds no promise going forward. The opposite may be true as <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/07/3746401/s-p-bullish-on-a-trio-of-tech-etfs">improving earnings</a> and an increasingly attractive dividend picture could buoy large-cap tech names.

	Investors that already have large-cap tech exposure may want to consider adding some small-caps to their respective frays. The PowerShares S&amp;P SmallCap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) is the ETF with which to accomplish that objective.

	While PSCT is dwarfed in size by large-cap tech ETFs such as XLK and the Vanguard Information Technology ETF (NYSE: <a class="ticker" href="/stock/vgt#NYSE">VGT</a>), the PowerShares offering does have almost $147 million in assets under management, putting it comfortably above the $100 million threshold <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3728299/two-sub-100m-etfs-that-have-outperformed-larger-rivals">so many folks deem important</a>.

	More important than superficial statistics is what PSCT has been doing for investors this year. The ETF, which debuted just over three years as the small-cap answer to XLK, is up 17.2 percent in 2013.

	That equals a significant gap of out-performance over large-cap tech ETFs indicating that the fund <a href="http://www.benzinga.com/news/earnings/13/04/3522083/a-guide-to-how-some-etfs-may-react-post-apple-earnings">is benefiting from the absence</a> of disappointing big-name tech stocks such as Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) and International Business Machines (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>).

	That said, PSCT is not littered with a slew of risky micro-cap names. The fund's 127 constituent have an average market value of $1.27 billion. Holdings include Microsemi (NASDAQ: <a class="ticker" href="/stock/mscc#NASDAQ">MSCC</a>) and Arris Enterprises (NASDAQ: <a class="ticker" href="/stock/arrs#NASDAQ">ARRS</a>), both of which earn four-star ratings from S&amp;P Capital IQ. S&amp;P Capital IQ has a Marketweight rating on PSCT.

	Familiar names among PSCT's lineup include OpenTable (NASDAQ: <a class="ticker" href="/stock/open#NASDAQ">OPEN</a>), Take-Two Interactive (NASDAQ: <a class="ticker" href="/stock/ttwo#NASDAQ">TTWO</a>) and Stamps.com (NASDAQ: <a class="ticker" href="/stock/stmp#NASDAQ">STMP</a>).

	PSCT may not win any volume competitions with average daily turnover of less than 23,000 shares, but in 2012's 250 trading days and the first 124 days of this year, the mid-point of the fund's bid/ask spread traded noticeably, and that is a stretch, above the net asset value on just one occasion, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=PSCT">according to PowerShares data</a>.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

ARRS

OPEN

STMP

Under The Hood: Going Small With a Tech ETF

by Max Isaacman, Minyanville staff writer 
	Pundits have cautioned against a possible bond market bubble that could lead to a bond market collapse for over four years now. There has been less money going into bonds and a concomitant increase of money flowing into stocks, ETFs, and equity mutual funds, and this is in the face of the government doing much that should scare off investors. We don’t know what will happen with the latest government standoff, which is the struggle over raising the debt ceiling, or with any other possible Washington standoffs, but those who wait to invest in equities until after the smoke clears may miss an opportunity, just as opportunity was lost waiting until after January 1, 2013 to invest in equities. This is especially true in the riskier asset classes, such as emerging markets, small-cap, and micro-cap. (Micro-cap stocks generally are referred to as those companies that have a market capitalization of about $50 million to $300 million.) 
	The small-cap and micro-cap class are the most volatile cap sizes. Investors in these classes are making a bet that the US economy will grow. Small-cap companies and micro-cap companies have a larger portion of their revenues coming from the US than mid- and large-cap companies, and they benefit more from a stronger US consumer and increased corporate spending. The S&amp;P 500 Index (INDEXSP:.INX) companies receive almost half of their sales from foreign countries, and companies in the S&amp;P Small-Cap 600 Index get less than 30% from foreign country sales. Small-cap companies can also get a boost from an increasing number of corporate buyouts, which will probably happen if the economy continues to improve. There are risks in small caps. If financing gets tight, small-cap companies can suffer, since their access to capital is not as great as big-cap companies. Tight financing risks are even greater in micro-cap. 
	A way to invest in small-cap ETFs is through sectors, rather than broad-based small cap ETFs. The PowerShares Small-Cap Technology ETF (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>) holds the same stocks as those that are in the tech sector of the S&amp;P 600 Small-Cap index. And PSCT does not hold Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) stock, which has been a problem holding for tech ETFs, since it has declined in value. AAPL dominates many of the tech sector ETFs, and it has declined about 35% from its high over the last 52 weeks, which is the worst performance of all technology stocks in the indexes. Apple comprises about 3.5% of the S&amp;P 500 but about 20% of the S&amp;P 500 technology sector. The reasons for Apple’s pullback are varied. Among the concerns is that there is more competition in the tablet and mobile phone markets. Perhaps much of the selling is just profit taking. Apple now sells at a reasonable multiple, and a concern about a severe downward price pressure from here is probably not warranted. 
	Tech firms continue to benefit from continued changes in the industry, trends such as cloud computing, more consumer products, and consumers’ switch to mobile devices and systems. Even if the demand from consumers weakens, tech should continue to grow. Growth in the sector has softened a bit because of global economic weakness and negative news regarding Apple’s slowdown, and potential industry slowdown. Tablets, smartphones, and other devices are still good sellers. Even if the personal computer market continues to slow, and there is some question if it will, other products should take up the slack.

	Micro-Cap ETFs as a High Beta Trade.

	Micro-cap ETFs have outperformed the S&amp;P 500 Index in the last year, and in shorter time periods, such as over the last three months and six month periods. Micro-caps have good price momentum and their price/earnings ratios are still reasonable, making them not appear to be overbought. Two that look attractive are the Guggenheim Wilshire Micro-Cap ETF (NYSEARCA:WMCR), and the PowerShares Zacks Micro Cap Portfolio (NYSEARCA:PZI).

	The Guggenheim Wilshire US Micro Cap ETF has exposure to about 800 securities, and no one company makes up more than about 1.1% of assets. Financials are the largest sector at about 26% of total assets, and health care makes up about 23%. Tech has a large allocation at about 18%. WMCR has a low price/earnings multiple, at about 13 times.

	PZI tracks the Zacks Micro Cap Index, and is designed to identify the micro-cap stocks with the greatest potential to outperform passive benchmark micro-cap indexes and actively managed US micro-cap strategies. Its index holds just 400 names. Financials comprise the biggest sector of the index at about 26%, and tech, industrials and consumer discretionary each comprise about 14% of total assets. PZI sells at a fairly rich earnings multiple of about 20 times.

	Trading Micro-Cap ETFs.

	Buying and selling stocks to keep within an index mandate is usually not a problem for ETF managers because markets are generally liquid. A problem with micro-cap ETFs is that there could be a liquidity problem in that ETF indexes usually contain stocks that have limited floats, which equates to limited liquidity in the marketplace. When an ETF sponsor has to buy and sell stocks to rebalance to keep within its models, the sponsors cannot just drop market orders. If the managers put in market orders they could drive up or down the market price, and end up buying or selling stock outside of the stock’s realistic market price. 
	Market liquidity in micro-cap stocks will get better if the general market continues to improve and the public’s risk appetite grows. But at times when markets are not going up, liquidity is a problem, and special handling will be necessary. The problem is mitigated somewhat by the large amount of stocks that are in the index baskets, giving diversity that is common to micro-cap ETFs. 
	Paul Weisbruch of Street One Financial is a liquidity provider for stocks and ETFs, and he works at making it possible for sponsors and traders to trade what are sometimes illiquid securities. Weisbruch says that small- and micro-cap ETFs are back in focus because of their potential to deliver growth. Weisbruch says, “In 2013, we have certainly noticed a pick-up in activity in small-cap sector oriented funds, such as PSCT, in addition to increasing allocations being made to the micro-cap specific names as well. This, along with an increase in activity and a lift in performance in country specific “small cap” products, such as iShares MSCI Brazil Small Cap Index ETF (NYSEARCA:EWZS), shows us that investors who may have sat on the sidelines during the past few years as the equity markets have rallied are embracing higher beta segments of the market, whether they be US domestic or even foreign based small- and micro-cap equity names, via an assortment of newer and innovative ETFs.”

	More From Minyanville

	<a href="http://www.minyanville.com/trading-and-investing/personal-finance/articles/buy-and-hold-investing-buy-and/2/7/2013/id/47879">Value Investing for Mothers-in-Law (And Everyone Else): What 'Buy and Hold' Really Means</a> <a href="http://www.minyanville.com/trading-and-investing/earnings/articles/How-to-Play-Coinstar-Ahead-of/2/7/2013/id/47970">How to Play Coinstar Ahead of Earnings: Tight Competition, Weak Chart Signal Drop</a>

	<a href="http://www.minyanville.com/sectors/technology/articles/dell-buyout-microsoft-silver-lake-partners/2/7/2013/id/47929">Is Dell Stealing Dell?</a>

Comments

Invesco S&P SmallCap Information Technology ETF

뉴스

에 대한 최신 뉴스 Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT)

화요일, 9월 10, 2024

뉴스

파트너 / 기고자

벤징가 글로벌