The Invesco S&P SmallCap Energy ETF (PSCE) is a $106 million fund that seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600 Capped Energy Index, explains Jim Woods, editor of The Deep Woods.

The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. energy companies that comprise the underlying index.

These companies are principally engaged in the business of producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services and pipelines. With its focus on energy, the fund is non-diversified.

PSCE represents the energy segment of the S&P SmallCap 600, a market-cap-weighted index that consists of U.S. small-cap companies screened for size, liquidity and financial viability. The fund holds a concentrated portfolio of small-cap energy firms, which may include those involved in oil & gas exploration and production, refining, oil services, as well as pipelines.

Selected securities are weighted by market cap and are constrained at each quarterly rebalance, such that individual securities will not exceed 22.5% weight. The aggregate weight of securities with more than 4.5% allocation is capped at 45% weight of the portfolio. Overall, PSCE is an interesting small-cap play in the U.S. energy sector.

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PSCE's share price has experienced explosive gains of more than 136% during the trailing 12-month period and the fund looks poised to continue going higher. It has a 0.37% yield and 0.29% expense ratio, meaning it is relatively inexpensive to hold in relation to other exchange-traded funds.

However, as with any opportunity, I urge all potential investors to exercise their own due diligence in deciding whether this fund fits their own individual portfolio goals.

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