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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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The Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) made its debut on 03/03/2005, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $775.77 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.06%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 42.60% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Facebook Inc accounts for about 3.81% of total assets, followed by Texas Instruments Inc (TXN - Free Report) and Microsoft Corp (MSFT - Free Report) .
PWB's top 10 holdings account for about 34.09% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Large Cap Growth ETF has gained about 11.16% so far, and was up about 39.76% over the last 12 months (as of 06/29/2021). PWB has traded between $54.77 and $74.45 in this past 52-week period.
The fund has a beta of 0.91 and standard deviation of 24.40% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG - Free Report) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ - Free Report) tracks NASDAQ-100 Index. Vanguard Growth ETF has $78.26 billion in assets, Invesco QQQ has $174.11 billion. VUG has an expense ratio of 0.04% 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 Style Box - Large Cap Growth.
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 Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
The Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) made its debut on 03/03/2005, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $775.77 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.06%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 42.60% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Facebook Inc accounts for about 3.81% of total assets, followed by Texas Instruments Inc (TXN - Free Report) and Microsoft Corp (MSFT - Free Report) .
PWB's top 10 holdings account for about 34.09% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Large Cap Growth ETF has gained about 11.16% so far, and was up about 39.76% over the last 12 months (as of 06/29/2021). PWB has traded between $54.77 and $74.45 in this past 52-week period.
The fund has a beta of 0.91 and standard deviation of 24.40% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG - Free Report) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ - Free Report) tracks NASDAQ-100 Index. Vanguard Growth ETF has $78.26 billion in assets, Invesco QQQ has $174.11 billion. VUG has an expense ratio of 0.04% 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 Style Box - Large Cap Growth.
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.