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Should You Invest in the Invesco DWA Energy Momentum ETF (PXI)?
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Launched on 10/12/2006, the Invesco DWA Energy Momentum ETF (PXI - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $202.03 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. PXI seeks to match the performance of the DWA Energy Technical Leaders Index before fees and expenses.
The Dorsey Wright??Energy 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.48%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 97% of the portfolio.
Looking at individual holdings, Ovintiv Inc (OVV - Free Report) accounts for about 4.27% of total assets, followed by Cheniere Energy Inc (LNG - Free Report) and Range Resources Corp (RRC - Free Report) .
The top 10 holdings account for about 34.71% of total assets under management.
Performance and Risk
The ETF has gained about 13.15% so far this year and it's up approximately 54.30% in the last one year (as of 02/15/2022). In that past 52-week period, it has traded between $21.98 and $36.90.
The ETF has a beta of 1.86 and standard deviation of 48.85% for the trailing three-year period, making it a high risk choice in the space. With about 46 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Energy Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PXI is a reasonable option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.17 billion in assets, Energy Select Sector SPDR ETF has $35.13 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
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 Energy Momentum ETF (PXI)?
Launched on 10/12/2006, the Invesco DWA Energy Momentum ETF (PXI - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $202.03 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. PXI seeks to match the performance of the DWA Energy Technical Leaders Index before fees and expenses.
The Dorsey Wright??Energy 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.48%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 97% of the portfolio.
Looking at individual holdings, Ovintiv Inc (OVV - Free Report) accounts for about 4.27% of total assets, followed by Cheniere Energy Inc (LNG - Free Report) and Range Resources Corp (RRC - Free Report) .
The top 10 holdings account for about 34.71% of total assets under management.
Performance and Risk
The ETF has gained about 13.15% so far this year and it's up approximately 54.30% in the last one year (as of 02/15/2022). In that past 52-week period, it has traded between $21.98 and $36.90.
The ETF has a beta of 1.86 and standard deviation of 48.85% for the trailing three-year period, making it a high risk choice in the space. With about 46 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Energy Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PXI is a reasonable option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.17 billion in assets, Energy Select Sector SPDR ETF has $35.13 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
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.