Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Dynamic Large Cap Growth ETF (
PWB Quick Quote PWB - Free Report) is a passively managed exchange traded fund launched on 03/03/2005.
The fund is sponsored by Invesco. It has amassed assets over $844.48 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
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 0.56%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.03%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 37.90% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Tesla Inc (
TSLA Quick Quote TSLA - Free Report) accounts for about 5.14% of total assets, followed by Nvidia Corp ( NVDA Quick Quote NVDA - Free Report) and Thermo Fisher Scientific Inc ( TMO Quick Quote TMO - Free Report) .
The top 10 holdings account for about 36.41% of total assets under management.
Performance and Risk
PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
The ETF has added roughly 21.25% so far this year and it's up approximately 20.32% in the last one year (as of 12/31/2021). In the past 52-week period, it has traded between $63.11 and $82.12.
The ETF has a beta of 0.92 and standard deviation of 23.93% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Invesco Dynamic Large Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PWB is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (
VUG Quick Quote VUG - Free Report) and the Invesco QQQ ( QQQ Quick Quote QQQ - Free Report) track a similar index. While Vanguard Growth ETF has $90.56 billion in assets, Invesco QQQ has $216.25 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%. 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.