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Should Invesco DWA SmallCap Momentum ETF (DWAS) Be on Your Investing Radar?
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Launched on 07/19/2012, the Invesco DWA SmallCap Momentum ETF (DWAS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $351.31 M, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.60%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.21%.
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.
This ETF has heaviest allocation to the Healthcare sector--about 30.80% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Axogen Inc (AXGN - Free Report) accounts for about 1.68% of total assets, followed by Mgp Ingredients Inc (MGPI - Free Report) and Mirati Therapeutics Inc .
The top 10 holdings account for about 14.01% of total assets under management.
Performance and Risk
DWAS seeks to match the performance of the Dorsey Wright SmallCap Technical Leaders Index before fees and expenses. The Index Provider determines a company?s relative strength characteristics based on that company market performance. The Index Provider selects approximately 200 companies for inclusion in the Underlying Index from a small-cap universe of approximately 2,000 of the smallest U.S. companies selected from a broader set of 3,000 companies.
The ETF return is roughly 15.41% so far this year and was up about 33.28% in the last one year (as of 07/09/2018). In the past 52-week period, it has traded between $42.17 and $57.13.
The ETF has a beta of 1.12 and standard deviation of 18.19% for the trailing three-year period, making it a high risk choice in the space. With about 200 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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 Invesco DWA SmallCap Momentum ETF (DWAS) Be on Your Investing Radar?
Launched on 07/19/2012, the Invesco DWA SmallCap Momentum ETF (DWAS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $351.31 M, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.60%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.21%.
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.
This ETF has heaviest allocation to the Healthcare sector--about 30.80% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Axogen Inc (AXGN - Free Report) accounts for about 1.68% of total assets, followed by Mgp Ingredients Inc (MGPI - Free Report) and Mirati Therapeutics Inc .
The top 10 holdings account for about 14.01% of total assets under management.
Performance and Risk
DWAS seeks to match the performance of the Dorsey Wright SmallCap Technical Leaders Index before fees and expenses. The Index Provider determines a company?s relative strength characteristics based on that company market performance. The Index Provider selects approximately 200 companies for inclusion in the Underlying Index from a small-cap universe of approximately 2,000 of the smallest U.S. companies selected from a broader set of 3,000 companies.
The ETF return is roughly 15.41% so far this year and was up about 33.28% in the last one year (as of 07/09/2018). In the past 52-week period, it has traded between $42.17 and $57.13.
The ETF has a beta of 1.12 and standard deviation of 18.19% for the trailing three-year period, making it a high risk choice in the space. With about 200 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.