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Should You Invest in the Invesco DWA Healthcare Momentum ETF (PTH)?
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Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Invesco DWA Healthcare Momentum ETF (PTH - Free Report) , a passively managed exchange traded fund launched on 10/12/2006.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $295.68 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PTH seeks to match the performance of the DWA Healthcare Technical Leaders Index before fees and expenses.
The DWA Healthcare 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it one of the more expensive products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 96.80% of the portfolio.
Looking at individual holdings, West Pharmaceutical Services Inc (WST - Free Report) accounts for about 4.27% of total assets, followed by Amedisys Inc (AMED - Free Report) and Masimo Corp (MASI - Free Report) .
The top 10 holdings account for about 37.69% of total assets under management.
Performance and Risk
Year-to-date, the Invesco DWA Healthcare Momentum ETF has added roughly 3.28% so far, and it's up approximately 24.04% over the last 12 months (as of 05/11/2020). PTH has traded between $71.82 and $105.60 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 28.63% for the trailing three-year period, making it a high risk choice in the space. With about 42 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Healthcare 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, PTH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $9.94 billion in assets, Health Care Select Sector SPDR ETF has $24.65 billion. VHT has an expense ratio of 0.10% and XLV charges 0.13%.
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 Healthcare Momentum ETF (PTH)?
Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Invesco DWA Healthcare Momentum ETF (PTH - Free Report) , a passively managed exchange traded fund launched on 10/12/2006.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $295.68 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PTH seeks to match the performance of the DWA Healthcare Technical Leaders Index before fees and expenses.
The DWA Healthcare 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it one of the more expensive products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 96.80% of the portfolio.
Looking at individual holdings, West Pharmaceutical Services Inc (WST - Free Report) accounts for about 4.27% of total assets, followed by Amedisys Inc (AMED - Free Report) and Masimo Corp (MASI - Free Report) .
The top 10 holdings account for about 37.69% of total assets under management.
Performance and Risk
Year-to-date, the Invesco DWA Healthcare Momentum ETF has added roughly 3.28% so far, and it's up approximately 24.04% over the last 12 months (as of 05/11/2020). PTH has traded between $71.82 and $105.60 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 28.63% for the trailing three-year period, making it a high risk choice in the space. With about 42 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Healthcare 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, PTH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care ETF (VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $9.94 billion in assets, Health Care Select Sector SPDR ETF has $24.65 billion. VHT has an expense ratio of 0.10% and XLV charges 0.13%.
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.