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For investors looking for momentum, the PowerShares S&P SmallCap Energy Portfolio ETF (NASDAQ: PSCE ) is probably on their radar now. The fund just touched a new record low, and shares of PSCE are down roughly 61% from their 52-week high price of $49.57/share. But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed: PSCE in Focus PSCE focuses on the energy segment of the U.S. market, holding 33 stocks in its basket. It is a small cap-centric fund with key holdings in the energy equipment & services and exploration & production segments. The fund charges investors 29 basis points a year in fees, and has its top holdings in PDC Energy (NASDAQ: PDCE ), Exterran Holdings (NYSE: EXH ) and Carrizo Oil & Gas (NASDAQ: CRZO ) (see: all the Energy ETFs here ). Why the Move? The Energy sector has been an area to watch lately as oil price resumed its decline and got trapped in the nastiest downward spiral joining the broader sell-off in commodities amid growing global glut and the China slowdown. Additionally, the latest downbeat economic data from both the U.S. and China led to the concerns over tepid oil demand growth. More Pain Ahead? Currently, PSCE has a Zacks ETF Rank #4 (Sell), suggesting its continued underperformance in the coming months. Further, many of the segments that make up this ETF have the worst Zacks Industry Ranks. So there is still some downside risk signaling caution, and investors should wait until the sector bottoms out before jumping into this ETF. Original Post Share this article with a colleague Scalper1 News
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