The Invesco DWA Technology Momentum ETF (
PTF Quick Quote PTF - Free Report) was launched on 10/12/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
The fund is sponsored by Invesco. It has amassed assets over $272.23 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The DWA Technology 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.
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
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 Information Technology sector--about 90.40% of the portfolio.
Looking at individual holdings, Digital Turbine Inc (
APPS Quick Quote APPS - Free Report) accounts for about 7.67% of total assets, followed by Apple Inc ( AAPL Quick Quote AAPL - Free Report) and Five9 Inc ( FIVN Quick Quote FIVN - Free Report) .
The top 10 holdings account for about 47.98% of total assets under management.
Performance and Risk
Year-to-date, the Invesco DWA Technology Momentum ETF has lost about -1.31% so far, and it's up approximately 48.52% over the last 12 months (as of 06/04/2021). PTF has traded between $88.46 and $172.99 in this past 52-week period.
The ETF has a beta of 1.05 and standard deviation of 36.62% for the trailing three-year period, making it a high risk choice in the space. With about 37 holdings, it has more concentrated exposure than peers.
Invesco DWA Technology 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, PTF is a sufficient option for those seeking exposure to the Technology ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Technology Select Sector SPDR ETF (
XLK Quick Quote XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF ( VGT Quick Quote VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.09 billion in assets, Vanguard Information Technology ETF has $43.20 billion. XLK has an expense ratio of 0.12% and VGT charges 0.10%. Bottom Line
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Zacks ETF Center.