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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?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $855.97 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 0.16%.
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.
Representing 37.60% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL - Free Report) accounts for about 3.86% of total assets, followed by Adobe Inc (ADBE - Free Report) and Oracle Corp (ORCL - Free Report) .
Its top 10 holdings account for approximately 34.84% of PWB's total assets under management.
Performance and Risk
The ETF has added about 15.78% so far this year and is up roughly 27.67% in the last one year (as of 08/09/2024). In the past 52-week period, it has traded between $65.50 and $96.54.
The fund has a beta of 1.02 and standard deviation of 21.03% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 51 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 $127.03 billion in assets, Invesco QQQ has $269.82 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?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $855.97 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 0.16%.
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.
Representing 37.60% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL - Free Report) accounts for about 3.86% of total assets, followed by Adobe Inc (ADBE - Free Report) and Oracle Corp (ORCL - Free Report) .
Its top 10 holdings account for approximately 34.84% of PWB's total assets under management.
Performance and Risk
The ETF has added about 15.78% so far this year and is up roughly 27.67% in the last one year (as of 08/09/2024). In the past 52-week period, it has traded between $65.50 and $96.54.
The fund has a beta of 1.02 and standard deviation of 21.03% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 51 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 $127.03 billion in assets, Invesco QQQ has $269.82 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.