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Is Invesco Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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Launched on 03/03/2005, the Invesco Large Cap Growth ETF (PWB - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track 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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $844.55 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.56%.
The fund has a 12-month trailing dividend yield of 0.24%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
PWB's heaviest allocation is in the Information Technology sector, which is about 40.50% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 4.12% of the fund's total assets, followed by Oracle Corp (ORCL - Free Report) and Alphabet Inc (GOOGL - Free Report) .
The top 10 holdings account for about 35.15% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Large Cap Growth ETF return is roughly 14.42% so far, and was up about 32.06% over the last 12 months (as of 06/04/2024). PWB has traded between $65.50 and $90.45 in this past 52-week period.
The fund has a beta of 1.02 and standard deviation of 20.75% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG - Free Report) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ - Free Report) tracks NASDAQ-100 Index. Vanguard Growth ETF has $124.53 billion in assets, Invesco QQQ has $270.56 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
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 Growth.
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 Large Cap Growth ETF (PWB) a Strong ETF Right Now?
Launched on 03/03/2005, the Invesco Large Cap Growth ETF (PWB - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track 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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $844.55 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.56%.
The fund has a 12-month trailing dividend yield of 0.24%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
PWB's heaviest allocation is in the Information Technology sector, which is about 40.50% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 4.12% of the fund's total assets, followed by Oracle Corp (ORCL - Free Report) and Alphabet Inc (GOOGL - Free Report) .
The top 10 holdings account for about 35.15% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Large Cap Growth ETF return is roughly 14.42% so far, and was up about 32.06% over the last 12 months (as of 06/04/2024). PWB has traded between $65.50 and $90.45 in this past 52-week period.
The fund has a beta of 1.02 and standard deviation of 20.75% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG - Free Report) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ - Free Report) tracks NASDAQ-100 Index. Vanguard Growth ETF has $124.53 billion in assets, Invesco QQQ has $270.56 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
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 Growth.
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.