Invesco S&P SmallCap Consumer Discretionary ETF: Undervalued but Lacking in Growth Prospects

The Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) has an attractive valuation but lacks other notable features. With a market cap of ~$21m and focusing on 85 small and micro-cap stocks, PSCD's average market cap is close to $2B. The ETF tracks the consumer discretionary sector and has a relatively small size compared to other ETFs.

The Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) has garnered attention for its attractive valuation, but it lacks notable features that might set it apart from other ETFs. With a market cap of approximately $21 million and focusing on 85 small and micro-cap stocks, PSCD's average market cap is close to $2 billion. The ETF tracks the consumer discretionary sector, a relatively small size compared to other ETFs.

PSCD aims to replicate the performance of the S&P SmallCap 600 Index, which measures the performance of positive revenue-producing constituent securities of the S&P SmallCap 600 Index. The Parent index comprises common stocks of approximately 600 small-capitalization companies, representing the small-cap segment of the U.S. equity market [1].

The ETF announced a quarterly dividend of $0.1197 per share, payable on June 27, 2025, with an ex-date on June 23, 2025, and a record date on the same day [2, 3]. This dividend provides a 30-day SEC yield of 0.90% as of June 20, 2025 [2].

Investors seeking strong Consumer Discretionary stocks might find Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) and Grand Canyon Education (LOPE) interesting. Both stocks have outperformed their sector this year, with ATAT returning 15.7% and LOPE returning 17% year-to-date [4]. This performance indicates that these companies could maintain their solid performance in the future.

In conclusion, while PSCD offers an attractive valuation and a dividend yield, its small size and lack of notable features might make it less appealing to some investors. However, for those interested in the consumer discretionary sector, PSCD could be a worthwhile consideration.

References:
[1] https://finance.yahoo.com/quote/RWJ/
[2] https://seekingalpha.com/news/4461292-invesco-smallcap-consumer-discretionary-etf-declares-quarterly-distribution-of-01197
[3] https://www.marketscreener.com/quote/stock/INVESCO-EXCHANGE-TRADED-F-118906520/news/Invesco-Exchange-Traded-Fund-Trust-II-Invesco-S-P-SmallCap-Consumer-Discretionary-ETF-announces-Qu-50319032/
[4] https://www.nasdaq.com/articles/are-consumer-discretionary-stocks-lagging-atour-lifestyle-holdings-limited-sponsored-adr-0