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Is Invesco 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 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?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
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 $911.74 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Value Intellidex Index.
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.
The fund has a 12-month trailing dividend yield of 2.05%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
PWV's heaviest allocation is in the Financials sector, which is about 27% of the portfolio. Its Healthcare and Energy round out the top three.
Looking at individual holdings, Abbvie Inc (ABBV - Free Report) accounts for about 3.58% of total assets, followed by Amgen Inc (AMGN - Free Report) and Bank Of America Corp (BAC - Free Report) .
Its top 10 holdings account for approximately 34.38% of PWV's total assets under management.
Performance and Risk
The ETF has added about 8.22% and was up about 15.03% so far this year and in the past one year (as of 08/06/2024), respectively. PWV has traded between $44.09 and $57.93 during this last 52-week period.
The fund has a beta of 0.86 and standard deviation of 14.56% for the trailing three-year period, which makes PWV a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $55.97 billion in assets, Vanguard Value ETF has $115.22 billion. SCHD has an expense ratio of 0.06% 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 Large Cap Value ETF (PWV) a Strong ETF Right Now?
Making its debut on 03/03/2005, smart beta exchange traded fund Invesco 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?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
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 $911.74 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Value Intellidex Index.
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.
The fund has a 12-month trailing dividend yield of 2.05%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
PWV's heaviest allocation is in the Financials sector, which is about 27% of the portfolio. Its Healthcare and Energy round out the top three.
Looking at individual holdings, Abbvie Inc (ABBV - Free Report) accounts for about 3.58% of total assets, followed by Amgen Inc (AMGN - Free Report) and Bank Of America Corp (BAC - Free Report) .
Its top 10 holdings account for approximately 34.38% of PWV's total assets under management.
Performance and Risk
The ETF has added about 8.22% and was up about 15.03% so far this year and in the past one year (as of 08/06/2024), respectively. PWV has traded between $44.09 and $57.93 during this last 52-week period.
The fund has a beta of 0.86 and standard deviation of 14.56% for the trailing three-year period, which makes PWV a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $55.97 billion in assets, Vanguard Value ETF has $115.22 billion. SCHD has an expense ratio of 0.06% 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.