5 Small-Cap ETFs Scaling New Highs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 29 2024
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Should l Buy PSCH?
Source: NASDAQ.COM
Small-Cap Stocks Performance: Small-cap stocks have surged, with the Russell 2000 Index gaining 10.4% this month amid expectations of Fed rate cuts, while the U.S. economy shows resilience with a GDP growth of 2.8% in Q2, driven by consumer spending and business investment.
Sector Opportunities and Risks: Lower interest rates are expected to benefit sectors like real estate, consumer discretionary, and financial services, while small-cap stocks are viewed as safer investments during political or economic turmoil, particularly amidst ongoing global conflicts.
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Analyst Views on PSCH
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
5 Small-Cap ETFs Scaling New Highs
Small-Cap Stocks Performance: Small-cap stocks have surged, with the Russell 2000 Index gaining 10.4% this month amid expectations of Fed rate cuts, while the U.S. economy shows resilience with a GDP growth of 2.8% in Q2, driven by consumer spending and business investment.
Sector Opportunities and Risks: Lower interest rates are expected to benefit sectors like real estate, consumer discretionary, and financial services, while small-cap stocks are viewed as safer investments during political or economic turmoil, particularly amidst ongoing global conflicts.
See More
EXCLUSIVE: Coya Therapeutics, Focused On Neurodegenerative Diseases Has Gained 70% Since IPO; CEO Highlights Efforts On Combination Therapy For Rare Diseases
- Coya Therapeutics Overview:
- A clinical-stage biotechnology company focusing on Tregs for inflammation and neuroinflammation treatments.
- Shares surged by 70% post-IPO, outperforming the Invesco S&P SmallCap Health Care ETF.
- Q&A with Howard Berman:
- Emphasizes a comprehensive approach over the traditional 'one disease – one target – one drug' model for neurodegenerative disorders.
- Moving towards combination approaches and biologics in line with the general biotech market trends.
- COYA 302 Program:
- Lead investigational biologic product targeting ALS, FTD, Parkinson’s, and Alzheimer’s diseases.
- Combines low-dose interleukin-2 and CTLA4-Ig for a dual mechanism of action to restore Treg function and suppress pro-inflammatory cells.
- Market and Competition:
- Targeting >50% of ALS patients initially, with plans for expansion into FTD.
- Differentiates from Biogen's product by aiming to treat all ALS patients and offering a different administration method.
- Future Outlook:
- Sees COYA 302 as a versatile treatment option for various neurodegenerative conditions driven by immune imbalance and Treg dysfunction.
- Plans for additional clinical trials in Alzheimer’s, Parkinson’s, and FTD in the future.
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Should You Invest in the Invesco S&P SmallCap Health Care ETF (PSCH)?
- PSCH ETF Overview: Invesco S&P SmallCap Health Care ETF (PSCH) is a passively managed fund launched in 2010, offering exposure to the Healthcare - Broad segment.
- Benefits of ETFs: Retail and institutional investors favor ETFs for low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment.
- Index Details: PSCH seeks to match the performance of the S&P SmallCap 600 Capped Health Care Index, measuring common stock performance in the health care sector.
- Costs and Holdings: The ETF has an expense ratio of 0.29%, with a 100% allocation to the Healthcare sector and top holdings including ENSG, OGN, and ALKS.
- Performance and Alternatives: PSCH has returned 0.65% YTD, down -0.66% in the last year, with a high-risk profile. Investors can consider alternatives like VHT and XLV in the Health Care ETF space.
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Organon Beats On Q1, Women's Health Leads the Charge
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Organon Beats On Q1, Women's Health Leads the Charge
- Organon & Co Financial Performance: Reported a 5% Y/Y increase in Q1 2024 revenue to $1.622 billion, beating consensus.
- Revenue Breakdown: Women’s Health revenue increased by 11%, Biosimilar revenue surged by 46%, and Established Brands remained flat Y/Y.
- Margins and Earnings: Adjusted gross margin was 62.1%, adjusted EBITDA margin contracted to 33.2%, and adjusted EPS was $1.22.
- Financial Position: Cash and cash equivalents were $575 million, debt stood at $8.7 billion, and a quarterly dividend of $0.28 per share was declared.
- Guidance and Stock Performance: FY24 revenue forecast of $6.2-$6.5 billion, reaffirmed adjusted EBITDA margin, and OGN shares were up 2.18% at $19.24.
See More
5 Small-Cap ETFs Scaling New Highs
Small-Cap Stocks Performance: Small-cap stocks have surged, with the Russell 2000 Index gaining 10.4% this month amid expectations of Fed rate cuts, while the U.S. economy shows resilience with a GDP growth of 2.8% in Q2, driven by consumer spending and business investment.
Sector Opportunities and Risks: Lower interest rates are expected to benefit sectors like real estate, consumer discretionary, and financial services, while small-cap stocks are viewed as safer investments during political or economic turmoil, particularly amidst ongoing global conflicts.
See More
EXCLUSIVE: Coya Therapeutics, Focused On Neurodegenerative Diseases Has Gained 70% Since IPO; CEO Highlights Efforts On Combination Therapy For Rare Diseases
- Coya Therapeutics Overview:
- A clinical-stage biotechnology company focusing on Tregs for inflammation and neuroinflammation treatments.
- Shares surged by 70% post-IPO, outperforming the Invesco S&P SmallCap Health Care ETF.
- Q&A with Howard Berman:
- Emphasizes a comprehensive approach over the traditional 'one disease – one target – one drug' model for neurodegenerative disorders.
- Moving towards combination approaches and biologics in line with the general biotech market trends.
- COYA 302 Program:
- Lead investigational biologic product targeting ALS, FTD, Parkinson’s, and Alzheimer’s diseases.
- Combines low-dose interleukin-2 and CTLA4-Ig for a dual mechanism of action to restore Treg function and suppress pro-inflammatory cells.
- Market and Competition:
- Targeting >50% of ALS patients initially, with plans for expansion into FTD.
- Differentiates from Biogen's product by aiming to treat all ALS patients and offering a different administration method.
- Future Outlook:
- Sees COYA 302 as a versatile treatment option for various neurodegenerative conditions driven by immune imbalance and Treg dysfunction.
- Plans for additional clinical trials in Alzheimer’s, Parkinson’s, and FTD in the future.
See More
Should You Invest in the Invesco S&P SmallCap Health Care ETF (PSCH)?
- PSCH ETF Overview: Invesco S&P SmallCap Health Care ETF (PSCH) is a passively managed fund launched in 2010, offering exposure to the Healthcare - Broad segment.
- Benefits of ETFs: Retail and institutional investors favor ETFs for low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment.
- Index Details: PSCH seeks to match the performance of the S&P SmallCap 600 Capped Health Care Index, measuring common stock performance in the health care sector.
- Costs and Holdings: The ETF has an expense ratio of 0.29%, with a 100% allocation to the Healthcare sector and top holdings including ENSG, OGN, and ALKS.
- Performance and Alternatives: PSCH has returned 0.65% YTD, down -0.66% in the last year, with a high-risk profile. Investors can consider alternatives like VHT and XLV in the Health Care ETF space.
See More
Organon Beats On Q1, Women's Health Leads the Charge
See More
Organon Beats On Q1, Women's Health Leads the Charge
- Organon & Co Financial Performance: Reported a 5% Y/Y increase in Q1 2024 revenue to $1.622 billion, beating consensus.
- Revenue Breakdown: Women’s Health revenue increased by 11%, Biosimilar revenue surged by 46%, and Established Brands remained flat Y/Y.
- Margins and Earnings: Adjusted gross margin was 62.1%, adjusted EBITDA margin contracted to 33.2%, and adjusted EPS was $1.22.
- Financial Position: Cash and cash equivalents were $575 million, debt stood at $8.7 billion, and a quarterly dividend of $0.28 per share was declared.
- Guidance and Stock Performance: FY24 revenue forecast of $6.2-$6.5 billion, reaffirmed adjusted EBITDA margin, and OGN shares were up 2.18% at $19.24.
See More
