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Is Invesco Dynamic 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 Dynamic 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?
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.
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.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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 $803.66 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. PWV seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.58% for PWV, making it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.16%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 24.70% of the portfolio. Financials and Energy round out the top three.
Taking into account individual holdings, United Parcel Service Inc (UPS - Free Report) accounts for about 3.68% of the fund's total assets, followed by Oracle Corp (ORCL - Free Report) and Bristol-Myers Squibb Co (BMY - Free Report) .
The top 10 holdings account for about 35.11% of total assets under management.
Performance and Risk
The ETF has lost about -3.45% so far this year and is up about 7.40% in the last one year (as of 09/13/2022). In the past 52-week period, it has traded between $42.71 and $50.64.
PWV has a beta of 0.88 and standard deviation of 24.11% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $53.66 billion in assets, Vanguard Value ETF has $100.65 billion. IWD has an expense ratio of 0.18% 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 Dynamic Large Cap Value ETF (PWV) a Strong ETF Right Now?
Making its debut on 03/03/2005, smart beta exchange traded fund Invesco Dynamic 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?
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.
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.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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 $803.66 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. PWV seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.58% for PWV, making it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.16%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 24.70% of the portfolio. Financials and Energy round out the top three.
Taking into account individual holdings, United Parcel Service Inc (UPS - Free Report) accounts for about 3.68% of the fund's total assets, followed by Oracle Corp (ORCL - Free Report) and Bristol-Myers Squibb Co (BMY - Free Report) .
The top 10 holdings account for about 35.11% of total assets under management.
Performance and Risk
The ETF has lost about -3.45% so far this year and is up about 7.40% in the last one year (as of 09/13/2022). In the past 52-week period, it has traded between $42.71 and $50.64.
PWV has a beta of 0.88 and standard deviation of 24.11% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $53.66 billion in assets, Vanguard Value ETF has $100.65 billion. IWD has an expense ratio of 0.18% 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.