Topic: How To Invest

Q: Thanks, Pat, for all the advice during this crazy market. It’s a timely question: what do you think of the Invesco S&P SmallCap Health Care ETF? Thanks again.

Article Excerpt

A: The Invesco S&P SmallCap Health Care ETF, $139.65, symbol PSCH on Nasdaq (Units outstanding: 2.4 million; Market cap: $335.2 million;, invests in smaller U.S. firms involved in the health-care industry. They operate in areas such as biotechnology, pharmaceuticals, medical technology, medical supplies, and medical facilities. In 2018, the ETF changed its name from the PowerShares S&P SmallCap Health Care ETF, after Invesco bought the ETF business of Guggenheim Investments. The fund tracks the S&P SmallCap 600 Capped Healthcare Index. The ETF, however, holds just 82 stocks. Among those firms, its top holdings are Ensign Group, (5.1%), AMN Healthcare Services (4.1%), Cytokinetics Inc. (3.9%), Merit Medical Systems (3.9%), Prestige Consumer Healthcare Inc. (3.2%), CONMED (2.9%), Select Medical Holdings (2.9%), Integer Holdings Corp. (2.4%), and Glaukos Corp. (2.3%). The industry exposure for investors is Health Care Providers & Services, 28.1%; Health Care Equipment & Supplies, 25.8%; Biotechnology, 22.9%; Pharmaceuticals, 16.4%; Health Care Technology, 4.8%; and Life Sciences Tools & Services, 2.2%. The fund started…