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Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?
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Launched on 10/11/2007, the Invesco Equal Weight 0-30 Year Treasury ETF (GOVI - Free Report) is a smart beta exchange traded fund offering broad exposure to the Government Bond ETFs 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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
GOVI is managed by Invesco, and this fund has amassed over $679.91 million, which makes it one of the average sized ETFs in the Government Bond ETFs. GOVI 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
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 cousins, other things remaining the same.
Annual operating expenses for GOVI are 0.15%, which makes it on par with most peer products in the space.
GOVI's 12-month trailing dividend yield is 2.90%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, United States Treasury Note/bond-4.50%-2-15-2036 accounts for about 6.74% of the fund's total assets, followed by United States Treasury Note/bond-2.75%-2-15-2024 and United States Treasury Note/bond-2.75%-2-15-2028.
GOVI's top 10 holdings account for about 38.38% of its total assets under management.
Performance and Risk
So far this year, GOVI has lost about -6.78%, and is up about 0% in the last one year (as of 10/27/2023). During this past 52-week period, the fund has traded between $25.78 and $28.23.
The ETF has a beta of 0.05. 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.
IShares 10-20 Year Treasury Bond ETF (TLH - Free Report) tracks ICE U.S Treasury 10-20 Year Bond Index and the iShares 20+ Year Treasury Bond ETF (TLT - Free Report) tracks ICE U.S. Treasury 20+ Year Bond Index. IShares 10-20 Year Treasury Bond ETF has $6.91 billion in assets, iShares 20+ Year Treasury Bond ETF has $38.96 billion. TLH has an expense ratio of 0.15% 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.
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Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?
Launched on 10/11/2007, the Invesco Equal Weight 0-30 Year Treasury ETF (GOVI - Free Report) is a smart beta exchange traded fund offering broad exposure to the Government Bond ETFs 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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
GOVI is managed by Invesco, and this fund has amassed over $679.91 million, which makes it one of the average sized ETFs in the Government Bond ETFs. GOVI 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
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 cousins, other things remaining the same.
Annual operating expenses for GOVI are 0.15%, which makes it on par with most peer products in the space.
GOVI's 12-month trailing dividend yield is 2.90%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, United States Treasury Note/bond-4.50%-2-15-2036 accounts for about 6.74% of the fund's total assets, followed by United States Treasury Note/bond-2.75%-2-15-2024 and United States Treasury Note/bond-2.75%-2-15-2028.
GOVI's top 10 holdings account for about 38.38% of its total assets under management.
Performance and Risk
So far this year, GOVI has lost about -6.78%, and is up about 0% in the last one year (as of 10/27/2023). During this past 52-week period, the fund has traded between $25.78 and $28.23.
The ETF has a beta of 0.05. 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.
IShares 10-20 Year Treasury Bond ETF (TLH - Free Report) tracks ICE U.S Treasury 10-20 Year Bond Index and the iShares 20+ Year Treasury Bond ETF (TLT - Free Report) tracks ICE U.S. Treasury 20+ Year Bond Index. IShares 10-20 Year Treasury Bond ETF has $6.91 billion in assets, iShares 20+ Year Treasury Bond ETF has $38.96 billion. TLH has an expense ratio of 0.15% 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.