5 min readBy Ron Koren ETF Insider
The Unseen Risks of Fund Overlap
Diversification has long been touted as the key to successful investing..
The issuer of the PSFM ETF, known as the Pacer US Small Cap Cash Cows 100 ETF, focuses on providing exposure to small-cap companies in the U.S. equity market. The fund aims to track the Pacer US Small Cap Cash Cows 100 Index, which includes companies with strong cash flow characteristics. By investing in these small-cap companies that exhibit solid financial health, the PSFM ETF offers investors a way to participate in the potential growth of promising businesses within the small-cap segment of the market.
The Invesco RAFI Strategic Developed ex-US Small Company ETF (PSFM) primarily focuses on selecting and weighting stocks based on fundamental factors like book value, cash flow, sales, and dividends. While dividends play a role in the strategy, the ETF's main goal is to provide exposure to small-cap international companies with strong fundamental attributes. This approach can potentially offer investors both capital appreciation and modest dividend income from a diversified portfolio of non-US small-cap stocks.
The strategy of the Invesco Global Short Term High Yield Bond ETF (PSFM) involves tracking the ICE BofAML Global High Yield 0-5 Index. This index represents a selection of high-yield corporate bonds with maturities ranging from 0 to 5 years. By aligning with the index, PSFM offers investors exposure to short-term high-yield bonds, allowing them to potentially benefit from the yield potential of this asset class while managing interest rate risk associated with longer-term bonds.
Understanding the correlation patterns of the PSFM ETF plays a significant role in comprehending its behavior within the broader market context. As the PSFM ETF's behavior is influenced by its underlying assets, analyzing its correlation with various market segments and assets helps investors make informed decisions about portfolio diversification and risk management. To delve into these correlations and gain valuable insights into market trends, investors can utilize tools like ETF Insider's web app, which provides in-depth data and simple visualizations to identify correlations and overlaps among various US ETFs.PSFM Sector
The Invesco PureBeta® MSCI USA Small Cap ETF (PSM) focuses on tracking the performance of the MSCI USA Small Cap Index, offering exposure to the small-cap sector of the U.S. equity market. Small-cap stocks are known for their potential for growth, as they represent smaller companies with room for expansion. By investing in this ETF, investors can gain access to a segment of the market that often exhibits higher volatility but can also offer attractive returns over the long term.PSFM Exposure
The Invesco Global Timber ETF (PSFM) offers exposure to the global timber industry, which encompasses companies involved in various aspects of the timber supply chain, including forest management, timberland ownership, and wood product manufacturing. This exposure allows investors to tap into the potential growth and demand for timber resources driven by construction, housing, and paper industries. To explore and understand the detailed exposure and characteristics of PSFM and other US ETFs, the ETF Insider web app provides a user-friendly visualization tool that reveals overlaps, correlations, and valuable data to enhance investment decision-making.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
By organizing and structuring that data, investors can easily navigate within their overlapping layers.
This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
5 min readDiversification has long been touted as the key to successful investing..
5 min readThe PSFM ETF, or "PowerShares Exchange-Traded Fund Series - Financial Momentum ETF," is a specialized investment fund designed to capitalize on the momentum of financial sector stocks. This exchange-traded fund aims to provide investors with exposure to financial companies that are experiencing positive price trends and growth potential. In this article, we delve into the characteristics, investment strategy, and potential benefits of the PSFM ETF for those interested in gaining momentum-driven exposure to the financial sector.
6 min readDiscovering the World of ETFs: Unveiling the ENTR ETF - A Comprehensive Overview
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
