PSCE: Amidst Market Confusion, This Small-Cap Energy Fund Has Room To Run

Nikola Lapenna198 FollowersFollow5ShareSavePlay(9min)CommentsSummaryInvesco S&P SmallCap Energy ETF offers targeted exposure to unhedged U.S. small-cap energy names, primed for upside in volatile oil markets.PSCE's concentrated portfolio of 33 domestic E&P stocks is positioned to benefit fully from elevated oil prices due to minimal hedging.The current geopolitical environment and fragile ceasefire create a buying opportunity, as the Strait of Hormuz remains effectively closed and supply risks persist.I rate PSCE a Buy on oil price weakness, given its fair 0.29% expense ratio, domestic focus, and strong leverage to further oil price spikes. quantic69/iStock via Getty Images PSCE Overview The Invesco S&P SmallCap Energy ETF (PSCE) is a passively managed exchange-traded fund with a NAV of around $118MM that invests in small-cap U.S. energy companies across oil and gas. The pointThis article was written byNikola Lapenna198 FollowersFollowWith over three years of finance and consulting experience, Nikola is laser focused on finding value in North American public equities and ETF's. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. More recently, Nikola has helped investors narrow down better options for ETF's - every asset manager seems to have similar offerings these days. Nikola is not a licensed financial advisor and nothing in his commentary here on Seeking Alpha should be regarded as advice. All of his opinions are his own, and not on behalf of any other entities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PSCE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. As a Canadian citizen, I don't have much $USD (never enough!) to invest, but I own Canadian small-cap oil players that are similar in nature to PSCE holdings.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.