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Is PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) a Hot ETF Right Now?
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Launched on 06/17/2011, the PowerShares Russell Top 200 Pure Growth Portfolio is a smart beta exchange traded fund offering broad exposure to the Large Cap ETFs category of the U.S. equity 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco Powershares, and has been able to amass over $212.28 M, which makes it one of the average sized ETFs in the Large Cap ETFs. Before fees and expenses, PXLG seeks to match the performance of the Russell Top 200 Pure Growth Index.
The Russell Top 200 Pure Growth Index is composed of securities with strong growth characteristics selected from the Russell Top 200 Index.
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 PXLG are 0.39%, which makes it on par with most peer products in the space.
PXLG's 12-month trailing dividend yield is 0.65%.
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.
Representing 35.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Netflix Inc (NFLX - Free Report) accounts for about 4.71% of total assets, followed by Amazon.com Inc (AMZN - Free Report) and Mastercard Inc (MA - Free Report) .
The top 10 holdings account for about 33.06% of total assets under management.
Performance and Risk
The fund's year-to-date return has gained about 7.51%, and was up about 26.99% in the last one year (as of 05/09/2018). PXLG has traded between $38.33 and $50.13 in the past 52-week period.
The ETF has a beta of 1.03 and standard deviation of 15.02% for the trailing three-year period, making it a medium choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
PowerShares Russell Top 200 Pure Growth Portfolio is a reasonable option for investors seeking to outperform the Large Cap ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Growth ETF (IWF - Free Report) tracks Russell 1000 Growth Index and the PowerShares QQQ (QQQ - Free Report) tracks NASDAQ-100 Index. IShares Russell 1000 Growth ETF has $40.91 B in assets, PowerShares QQQ has $61.65 B. IWF has an expense ratio of 0.20% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Large Cap 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 PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) a Hot ETF Right Now?
Launched on 06/17/2011, the PowerShares Russell Top 200 Pure Growth Portfolio is a smart beta exchange traded fund offering broad exposure to the Large Cap ETFs category of the U.S. equity 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco Powershares, and has been able to amass over $212.28 M, which makes it one of the average sized ETFs in the Large Cap ETFs. Before fees and expenses, PXLG seeks to match the performance of the Russell Top 200 Pure Growth Index.
The Russell Top 200 Pure Growth Index is composed of securities with strong growth characteristics selected from the Russell Top 200 Index.
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 PXLG are 0.39%, which makes it on par with most peer products in the space.
PXLG's 12-month trailing dividend yield is 0.65%.
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.
Representing 35.40% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Netflix Inc (NFLX - Free Report) accounts for about 4.71% of total assets, followed by Amazon.com Inc (AMZN - Free Report) and Mastercard Inc (MA - Free Report) .
The top 10 holdings account for about 33.06% of total assets under management.
Performance and Risk
The fund's year-to-date return has gained about 7.51%, and was up about 26.99% in the last one year (as of 05/09/2018). PXLG has traded between $38.33 and $50.13 in the past 52-week period.
The ETF has a beta of 1.03 and standard deviation of 15.02% for the trailing three-year period, making it a medium choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
PowerShares Russell Top 200 Pure Growth Portfolio is a reasonable option for investors seeking to outperform the Large Cap ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Growth ETF (IWF - Free Report) tracks Russell 1000 Growth Index and the PowerShares QQQ (QQQ - Free Report) tracks NASDAQ-100 Index. IShares Russell 1000 Growth ETF has $40.91 B in assets, PowerShares QQQ has $61.65 B. IWF has an expense ratio of 0.20% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Large Cap 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.