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Should You Invest in the Invesco DWA Industrials Momentum ETF (PRN)?
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Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Invesco DWA Industrials Momentum ETF (PRN - Free Report) , a passively managed exchange traded fund launched on 10/12/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $258.63 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PRN seeks to match the performance of the DWA Industrials Technical Leaders Index before fees and expenses.
The DWA Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.07%.
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.
This ETF has heaviest allocation in the Industrials sector--about 91.30% of the portfolio.
Looking at individual holdings, Avis Budget Group Inc (CAR - Free Report) accounts for about 4.92% of total assets, followed by Old Dominion Freight Line Inc (ODFL - Free Report) and Generac Holdings Inc (GNRC - Free Report) .
The top 10 holdings account for about 35.24% of total assets under management.
Performance and Risk
The ETF has added roughly 28.29% so far this year and was up about 33.65% in the last one year (as of 12/13/2021). In that past 52-week period, it has traded between $86.69 and $121.54.
The ETF has a beta of 1.07 and standard deviation of 27.94% for the trailing three-year period, making it a medium risk choice in the space. With about 43 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Industrials Momentum ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PRN is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.20 billion in assets, Industrial Select Sector SPDR ETF has $17.46 billion. VIS has an expense ratio of 0.10% and XLI charges 0.12%.
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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Should You Invest in the Invesco DWA Industrials Momentum ETF (PRN)?
Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Invesco DWA Industrials Momentum ETF (PRN - Free Report) , a passively managed exchange traded fund launched on 10/12/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $258.63 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PRN seeks to match the performance of the DWA Industrials Technical Leaders Index before fees and expenses.
The DWA Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.07%.
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.
This ETF has heaviest allocation in the Industrials sector--about 91.30% of the portfolio.
Looking at individual holdings, Avis Budget Group Inc (CAR - Free Report) accounts for about 4.92% of total assets, followed by Old Dominion Freight Line Inc (ODFL - Free Report) and Generac Holdings Inc (GNRC - Free Report) .
The top 10 holdings account for about 35.24% of total assets under management.
Performance and Risk
The ETF has added roughly 28.29% so far this year and was up about 33.65% in the last one year (as of 12/13/2021). In that past 52-week period, it has traded between $86.69 and $121.54.
The ETF has a beta of 1.07 and standard deviation of 27.94% for the trailing three-year period, making it a medium risk choice in the space. With about 43 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Industrials Momentum ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PRN is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.20 billion in assets, Industrial Select Sector SPDR ETF has $17.46 billion. VIS has an expense ratio of 0.10% and XLI charges 0.12%.
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.