PowerShares S&P Small Cap Energy (PSCE)
Welcome to Sector Scout, an ETF Radar blog that covers sector ETF opportunities. Some of you may have read my previous sector entries based on my monthly ETF rankings that find monthly sector ETF plays. Well I have now developed a brand new weekly ETF ranking system that finds weekly sector ETF plays. Not only will this provide you with new picks each week, but the universe I choose from is much larger meaning that you will see some new and niche sector ETFs I haven’t covered with my monthly rankings.
This week, my sector pick is the PowerShares S&P SmallCap Energy Portfolio (XLES). In many of my model portfolios I have been holding energy ETFs as a way to access the current trend in rising energy prices. This has been one of the more recent trends that have been consistent. Other holdings in many of my model portfolios are of small cap companies. This ETF actually covers small cap companies in the energy sector so in one ETF it gives us access to two of the trends I have been tracking. Companies held in the ETF include companies involved in distributing, producing and serving energy products such as oil services, oil and gas exploration and refining.
PowerShares S&P Small Cap Energy tracks the S&P Small Cap 600 Energy Capped Index. This index is a subset of S&P’s Small Cap 600 index. The fund was launched on April 7th of last year so it is fairly new. It has a small expense ratio of 0.29% and has an average daily trading volume of 68 thousand shares. As of March 14th, the fund had over 3.1 million shares outstanding with a market value of $116 million. Top holdings include Oil States International Inc (OIS), World Fuel Services Corp (INT), Lufkin Industries Inc (LUFK), CARBO Ceramics Inc (CRR), SEACOR Holdings Inc (CKH), Holly Corp (HOC), ION Geophysical Corp (IO) , Tetra Technologies Inc (TTI), Stone Energy Corp (SGY), and Petroleum Development Corp (PETD).
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com