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Is Invesco Dynamic Large Cap Value ETF (PWV) a Strong ETF Right Now?
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Making its debut on 03/03/2005, smart beta exchange traded fund Invesco Dynamic Large Cap Value ETF (PWV - Free Report) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
PWV is managed by Invesco, and this fund has amassed over $800.15 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.55% for PWV, making it one of the more expensive products in the space.
PWV's 12-month trailing dividend yield is 2.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
PWV's heaviest allocation is in the Healthcare sector, which is about 30.50% of the portfolio. Its Financials and Consumer Staples round out the top three.
Taking into account individual holdings, United Parcel Service Inc (UPS - Free Report) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV - Free Report) and Cisco Systems Inc (CSCO - Free Report) .
PWV's top 10 holdings account for about 34.69% of its total assets under management.
Performance and Risk
The ETF has added about 3.63% and is up roughly 10.93% so far this year and in the past one year (as of 07/24/2023), respectively. PWV has traded between $41.65 and $49.21 during this last 52-week period.
PWV has a beta of 0.88 and standard deviation of 15.64% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $52.06 billion in assets, Vanguard Value ETF has $102.54 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco Dynamic Large Cap Value ETF (PWV) a Strong ETF Right Now?
Making its debut on 03/03/2005, smart beta exchange traded fund Invesco Dynamic Large Cap Value ETF (PWV - Free Report) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
PWV is managed by Invesco, and this fund has amassed over $800.15 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.55% for PWV, making it one of the more expensive products in the space.
PWV's 12-month trailing dividend yield is 2.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
PWV's heaviest allocation is in the Healthcare sector, which is about 30.50% of the portfolio. Its Financials and Consumer Staples round out the top three.
Taking into account individual holdings, United Parcel Service Inc (UPS - Free Report) accounts for about 3.72% of the fund's total assets, followed by Abbvie Inc (ABBV - Free Report) and Cisco Systems Inc (CSCO - Free Report) .
PWV's top 10 holdings account for about 34.69% of its total assets under management.
Performance and Risk
The ETF has added about 3.63% and is up roughly 10.93% so far this year and in the past one year (as of 07/24/2023), respectively. PWV has traded between $41.65 and $49.21 during this last 52-week period.
PWV has a beta of 0.88 and standard deviation of 15.64% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $52.06 billion in assets, Vanguard Value ETF has $102.54 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.