PowerShares S&P SmallCap Health Care (PSCH)
This week, my sector pick is the PowerShares S&P SmallCap Healthcare Portfolio (PSCH). As the market has seen some declines recently it is no wonder that my model is pointing towards more defensive positions. In terms of sectors, health care is considered one of the more defensive sectors. This selection also continues on the current trend favoring small cap portfolios. Companies held in the ETF include firms involved in providing healthcare products and services such as biotechnology, facilities, medical technology, pharmaceuticals and supplies.
PowerShares S&P Small Cap Healthcare tracks the S&P Small Cap 600 Health Care Capped Index. This index is a subset of S&P’s Small Cap 600 index. This fund was also launched on April 7th of last year. It has a small expense ratio of 0.29% and has an average daily trading volume of 53 thousand shares. As of March 24th, the fund had over 4.3 million shares outstanding with a market value of $132 million. Top holdings include Cooper Companies (COO), Regeneron Pharmaceuticals Inc (REGN), AMERIGROUP Corp (AGP), HMS Holdings Corp (HMSY), HealthSpring Inc (HS), Catalyst Health Solutions Inc (CHSI), Dionex Corp (DNEX), Salix Pharamaceuticals (SLXP), American Medical Systems Holdings Inc (AMMD) and Haemonetics Corp (HAE).
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com