We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?
Read MoreHide Full Article
The Invesco Equal Weight 0-30 Year Treasury ETF (GOVI - Free Report) made its debut on 10/11/2007, and is a smart beta exchange traded fund that provides broad exposure to the Government Bond ETFs 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $832.03 million, making it one of the average sized ETFs in the Government Bond ETFs. This particular fund seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID before fees and expenses.
The ICE 1-30 Year Laddered Maturity US Treasury Index is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve.
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 0.15%.
The fund has a 12-month trailing dividend yield of 3.36%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, United States Treasury Note/bond-4.50%-02-15-2036 (912810FT0) accounts for about 4.98% of total assets, followed by United States Treasury Note/bond-4.00%-02-15-2034 (91282CJZ5) and United States Treasury Note/bond-4.75%-02-15-2041 (912810QN1).
The top 10 holdings account for about 36.93% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Equal Weight 0-30 Year Treasury ETF has added roughly 1.76% so far, and is up about 6.10% over the last 12 months (as of 09/03/2024). GOVI has traded between $25.78 and $29.16 in this past 52-week period.
The ETF has a beta of 0.16 and standard deviation of 10.16% for the trailing three-year period. With about 29 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Equal Weight 0-30 Year Treasury ETF is not a suitable option for investors seeking to outperform the Government Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Long-Term Treasury ETF (VGLT - Free Report) tracks Bloomberg Barclays U.S. Long Government Float Adjusted Index and the iShares 20+ Year Treasury Bond ETF (TLT - Free Report) tracks ICE U.S. Treasury 20+ Year Bond Index. Vanguard Long-Term Treasury ETF has $14.07 billion in assets, iShares 20+ Year Treasury Bond ETF has $61.47 billion. VGLT has an expense ratio of 0.04% and TLT charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?
The Invesco Equal Weight 0-30 Year Treasury ETF (GOVI - Free Report) made its debut on 10/11/2007, and is a smart beta exchange traded fund that provides broad exposure to the Government Bond ETFs 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $832.03 million, making it one of the average sized ETFs in the Government Bond ETFs. This particular fund seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID before fees and expenses.
The ICE 1-30 Year Laddered Maturity US Treasury Index is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve.
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 0.15%.
The fund has a 12-month trailing dividend yield of 3.36%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, United States Treasury Note/bond-4.50%-02-15-2036 (912810FT0) accounts for about 4.98% of total assets, followed by United States Treasury Note/bond-4.00%-02-15-2034 (91282CJZ5) and United States Treasury Note/bond-4.75%-02-15-2041 (912810QN1).
The top 10 holdings account for about 36.93% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Equal Weight 0-30 Year Treasury ETF has added roughly 1.76% so far, and is up about 6.10% over the last 12 months (as of 09/03/2024). GOVI has traded between $25.78 and $29.16 in this past 52-week period.
The ETF has a beta of 0.16 and standard deviation of 10.16% for the trailing three-year period. With about 29 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Equal Weight 0-30 Year Treasury ETF is not a suitable option for investors seeking to outperform the Government Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Long-Term Treasury ETF (VGLT - Free Report) tracks Bloomberg Barclays U.S. Long Government Float Adjusted Index and the iShares 20+ Year Treasury Bond ETF (TLT - Free Report) tracks ICE U.S. Treasury 20+ Year Bond Index. Vanguard Long-Term Treasury ETF has $14.07 billion in assets, iShares 20+ Year Treasury Bond ETF has $61.47 billion. VGLT has an expense ratio of 0.04% and TLT charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs.
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.