Invesco S&P SmallCap Industrials ETF

Invesco S&P SmallCap Industrials ETF (PSCI) tracks the S&P SmallCap 600 Capped Industrials Index. The index holds about 90 small US companies that make machinery, building products and aerospace parts, or provide transportation and business services. It offers one sector of the small-cap market, not the whole thing. Its 0.29% expense ratio is nearly double the 0.15% average of similar small-cap funds, and its assets were $184 million as of August 31, 2026.

• Over the year to Oct 27, 2026, PSCI returned +8.7%, 6th of 7 among similar funds.
• Its 5-year annualized return was +12.7% and its 10-year +14.2%.
• In the 2020 COVID crash it fell 43.5% and regained its old high 7.6 months after the low.
• Its worst full calendar year was 2018 (-13.2%); its best was 2013 (+43.5%).
• The deepest fall in its price history was 45.6% (Aug 21, 2018 to Mar 23, 2020), recovered by Nov 23, 2020.

As of Aug 31, 2026, the fund held 93 securities; the ten largest made up 22.98% of assets. It also reported 18.93% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Aug 31, 2026, investors added a net $5.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +8.85%, -4.86%, -2.95%.

S&P Dow Jones Indices builds and maintains the index. It starts with the S&P SmallCap 600 Index, which has about 600 small US companies. It then keeps only the companies in the industrials sector as defined by the Global Industry Classification Standard (GICS), a system that sorts companies into sectors. That sector covers makers of capital goods such as aerospace and defense products, building products, electrical equipment and machinery. It also covers commercial and professional services and transportation, including marine shipping, airlines and freight. As of October 31, 2025, the index held 91 stocks with market values from $482.4 million to $11.5 billion.

The fund uses full replication. That means it puts at least 90% of its assets into the index's stocks and holds each one at about its index weight. It doesn't try to beat the index, so it keeps a lagging stock until the index drops it. Portfolio turnover was 32% in the latest fiscal year reported in the prospectus. As of August 31, 2026, the fund held 93 stocks, and the top ten made up about 23% of assets. Paycom Software was the largest at 3.2%, followed by Armstrong World Industries at 2.4%.

The structure is simple. The fund uses no leverage, options or derivatives. Its shares trade on an exchange at prices that can be slightly above or below the value of its holdings. Because it focuses on one sector, its results depend heavily on how small industrial companies perform.

• PSCI charges 0.29% a year, versus an average of 0.15% for the similar funds below (6th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $368 over 10 years (assuming a 5% annual return).

It holds small companies from a single sector, so it works best as a small addition next to a broadly diversified core holding.

PSCI could add focused exposure to small US industrial companies, but the ride has been rough at times. The fund launched in April 2010, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 43.5% in about a month and took 7.6 months to recover. In the 2022 bear market it dropped 23.2% and recovered about 4.2 months after the low. Its worst calendar year was 2018, with a 12.4% loss. Its deepest decline was 45.6%, from August 2018 to March 2020, and it was back to its old high by November 2020. Anyone who had to sell shares during those drops would have locked in losses.

Income is modest: the trailing yield was 1.48% as of October 27, 2026, paid quarterly. In the SEC's standard example of $10,000 invested, costs total about $368 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).