At a glance
PSCM charges 0.29% a year, above the 0.27% average of the 2 funds most like it (the 2nd cheapest of 3). It has $21.1M in assets, the 3rd largest of that group; it paid 1.11% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +21.6% with distributions reinvested (S&P 500: +11.5%), the best of those 3 funds; over three years it returned +18.1% a year. At its worst it fell 40.4% in the 2020 crash (S&P 500: 33.7%) and 20.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 7 months after the lows. Its ten largest positions make up 64.0% of the fund, out of 25 in all.
The short version
Invesco S&P SmallCap Materials ETF (PSCM) tracks the S&P SmallCap 600 Capped Materials Index, giving targeted exposure to about 25 small US materials companies, such as Eastman Chemical and Element Solutions. It is concentrated: the 10 largest holdings made up 64% of assets as of August 31, 2026, when the fund held only about $21 million. Its 0.29% yearly fee sits between two loosely similar funds, IJS (0.18%) and XME (0.35%).
Price history
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PSCM +21.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PSCM official prospectus, to Dec 31, 2024 | — | +0.68% | — | +10.33% | +6.73% | — |
| PSCM price data to Oct 27, 2026 | +12.5% | +21.6% | +18.1% | +8.9% | +10.4% | +9.2% |
- Over the year to Oct 27, 2026, PSCM returned +21.6%, 1st of 3 among similar funds.
- Its 5-year annualized return was +8.9% and its 10-year +10.4%.
- In the 2020 COVID crash it fell 40.4% and regained its old high 7.5 months after the low.
- Its worst full calendar year was 2015 (-25.8%); its best was 2016 (+53.8%).
- The deepest fall in its price history was 51.3% (Sep 20, 2018 to Mar 23, 2020), recovered by Dec 8, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.5% | — |
| 2025 | +15.6% | — |
| 2024 | +0.7% | +0.68% |
| 2023 | +19.9% | +19.75% |
| 2022 | -6.5% | -6.36% |
| 2021 | +18.0% | +18.25% |
| 2020 | +22.2% | +22.41% |
| 2019 | +21.8% | +20.50% |
| 2018 | -23.3% | -22.32% |
| 2017 | +10.4% | +9.62% |
| 2016 | +53.8% | +54.22% |
| 2015 | -25.8% | -25.87% |
| 2014 | -0.2% | — |
| 2013 | +37.9% | — |
| 2012 | +23.0% | — |
| 2011 | -9.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 40.3% over that stretch · deepest drop along the way 40.4%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.2% over that stretch · deepest drop along the way 20.1%, back to its old high 6.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7500 | |
| 2025 | $0.9900 | +70.7% |
| 2024 | $0.5800 | -3.3% |
| 2023 | $0.6000 | +3.4% |
| 2022 | $0.5800 | +28.9% |
| 2021 | $0.4500 | -48.9% |
| 2020 | $0.8800 | +60.0% |
| 2019 | $0.5500 | +12.2% |
| 2018 | $0.4900 | +53.1% |
| 2017 | $0.3200 | -13.5% |
| 2016 | $0.3700 | -9.8% |
| 2015 | $0.4100 | +10.8% |
| 2014 | $0.3700 | +60.9% |
| 2013 | $0.2300 | -20.7% |
| 2012 | $0.2900 | -6.5% |
| 2011 | $0.3100 |
What's inside
As of Aug 31, 2026, the fund held 25 securities; the ten largest made up 63.99% of assets. It also reported 19.9% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Eastman Chemical Co. | 10.78% | |
| Element Solutions Inc. | 10.59% | |
| Sensient Technologies Corp. | 7.48% | |
| Balchem Corp. | 7.36% | |
| Celanese Corp. | 6.49% | |
| Warrior Met Coal, Inc. | 5.20% | |
| Materion Corp. | 4.83% | |
| H.B. Fuller Co. | 4.11% | |
| Kaiser Aluminum Corp. | 3.61% | |
| Century Aluminum Co. | 3.55% | |
| Alpha Metallurgical Resources, Inc. | 3.53% | |
| Hawkins, Inc. | 3.52% | |
| Ingevity Corp. | 3.38% | |
| Chemours Co. (The) | 3.28% | |
| Innospec Inc. | 3.24% |
By country
United States 99.93%By asset type
Stocks 99.93%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $982K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.17%, -7.24%, +4.20%.
How it works
PSCM is an index fund. Instead of picking stocks, it follows the S&P SmallCap 600 Capped Materials Index, run by S&P Dow Jones Indices. The index starts with the S&P SmallCap 600, about 600 small US companies. It keeps only the materials companies under the Global Industry Classification Standard (GICS), a system for sorting companies by business. That means producers of chemicals, construction materials, containers and packaging, metals, and paper and forest products. As of October 31, 2025, the index had 27 stocks, with market values from $499 million to $8.6 billion.
The fund uses full replication, meaning it generally owns every stock in the index in the same proportions. It keeps at least 90% of assets in index stocks. It buys or sells a stock mainly when the index adds or removes it, even if the stock is lagging. The prospectus lists portfolio turnover, a gauge of yearly trading, at 40%.
The fund is classed as non-diversified, so it can put more money into a few companies than a diversified fund could, which can make its price swing more. As of August 31, 2026, Eastman Chemical (10.8%) and Element Solutions (10.6%) were the largest holdings, and the top 10 made up 64% of assets. It uses no leverage and held no derivatives on that date.
What it really costs
- PSCM charges 0.29% a year, versus an average of 0.27% for the similar funds below (2nd of 3, 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).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PSCM | $30 | $93 | $163 | $368 |
In a retirement portfolio
It is a concentrated bet on about 25 small materials companies that fell 51.3% at its worst, so it fits a small slice of a portfolio better than a core position.
PSCM could add a focused slice of small US materials stocks, but the ride has been rough. It launched in 2010, after the 2008 crisis. In the 2020 COVID crash it fell 40.4% in about a month and regained its peak by November 2020. In 2022 it dropped 20.1% between June and July, recovering by January 2023. Its worst calendar year was 2015, down 25.87%. Its deepest drop, 51.3% from September 2018 to March 2020, took until December 2020 to recover. Selling shares for income near such a low would lock in losses.
Income is modest: dividends, paid quarterly, added up to a 1.11% yield over the 12 months to October 27, 2026. The 0.29% fee comes to about $30 in year one on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a targeted slice of small US materials firms, such as Eastman Chemical, Element Solutions and Sensient Technologies, beside broader core funds.
- Long-term holders who can ride out big swings, from a 25.87% loss in 2015 to a 54.22% gain in 2016.
- Investors wanting plain index tracking: PSCM generally owns every stock in its index, uses no leverage, and charges 0.29% a year.
Look elsewhere if
- Investors wanting broad small-company exposure; IJS holds small-cap value stocks across sectors for 0.18% and shares only about 6% of PSCM's holdings.
- Retirees seeking steady income or stability: the yield was 1.11% as of October 27, 2026, and the fund fell 40.4% in the 2020 crash.
- Investors who prefer large, heavily traded funds; PSCM held only about $21 million in assets as of August 31, 2026.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What is PSCM's average annual return?
As of December 31, 2024, PSCM's official average annual returns were 0.68% over one year, 10.33% over five years and 6.73% over 10 years, according to its prospectus. Based on share prices through October 27, 2026, it returned 21.6% over one year and 10.4% a year over 10 years. Results have been uneven: calendar years ranged from a 25.87% loss in 2015 to a 54.22% gain in 2016.
Does PSCM pay dividends?
Yes. PSCM pays dividends quarterly, passing along income from the stocks it holds. Over the 12 months to October 27, 2026, it paid about $1.04 per share, a yield of 1.11%. That is modest, so share price moves matter far more than dividends to its total return. Payouts can change from quarter to quarter because they depend on what the underlying companies pay.
What is the expense ratio of PSCM?
PSCM's expense ratio, the yearly fee taken out of fund assets, is 0.29%. That figure comes from its prospectus filed December 18, 2025, and there is no fee waiver. In the SEC's standard example, $10,000 invested at a 5% annual return would cost about $30 after one year, $163 after five years and $368 after 10, with shares sold at the end. That sits between IJS at 0.18% and XME at 0.35%, near the 0.27% average for similar funds.
PSCM vs XME: what's the difference?
The main difference is focus. XME, the SPDR S&P Metals & Mining ETF, targets metals and mining. PSCM covers the wider small-cap materials sector, including chemical makers such as Eastman Chemical and Celanese. XME is PSCM's closest match by holdings, yet they share only about 17%. XME costs 0.35% versus PSCM's 0.29% and held about $4.4 billion as of June 30, 2026. As of October 27, 2026, PSCM led over one year (21.6% vs. 3.1%), while XME led over three years (27.4% vs. 18.1% a year).
Is PSCM risky?
Yes, PSCM has been quite volatile. Volatility measures how widely returns swing, and PSCM's was 24.8% a year over the three years to October 27, 2026. It fell 40.4% in the 2020 COVID crash. Its deepest drop was 51.3%, from September 2018 to March 2020, and it recovered in December 2020. Its worst quarter, the first of 2020, lost 35.36%. It holds about 25 stocks in a single sector, so trouble at one company can move the whole fund.