The Invesco DWA Healthcare Momentum ETF (
PTH Quick Quote PTH - Free Report) was launched on 10/12/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
The fund is sponsored by Invesco. It has amassed assets over $501.13 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.
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%, making it on par with most peer products in the space.
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 in the Healthcare sector--about 98.90% of the portfolio.
Looking at individual holdings, Pacific Biosciences Of California Inc (
PACB Quick Quote PACB - Free Report) accounts for about 7.09% of total assets, followed by Tg Therapeutics Inc ( TGTX Quick Quote TGTX - Free Report) and Danaher Corp ( DHR Quick Quote DHR - Free Report) .
The top 10 holdings account for about 42.05% of total assets under management.
Performance and Risk
So far this year, PTH has lost about -9.67%, and it's up approximately 35.98% in the last one year (as of 05/11/2021). During this past 52-week period, the fund has traded between $106.66 and $188.39.
The ETF has a beta of 0.97 and standard deviation of 32.58% for the trailing three-year period, making it a high risk choice in the space. With about 55 holdings, it effectively diversifies company-specific risk.
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 Quick Quote VHT - Free Report) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF ( XLV Quick Quote XLV - Free Report) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $14.44 billion in assets, Health Care Select Sector SPDR ETF has $27.02 billion. VHT has an expense ratio of 0.10% and XLV charges 0.12%. Bottom Line
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