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Is Invesco Dynamic Large Cap Value ETF (PWV) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Invesco Dynamic Large Cap Value ETF (PWV - Free Report) is a smart beta exchange traded fund launched on 03/03/2005.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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 $821.79 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. PWV is managed by Invesco. PWV seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
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.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.88%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
PWV's heaviest allocation is in the Financials sector, which is about 20.80% of the portfolio. Its Healthcare and Consumer Staples round out the top three.
When you look at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 3.73% of the fund's total assets, followed by Bank Of America Corp (BAC - Free Report) and Home Depot Inc/the (HD - Free Report) .
Its top 10 holdings account for approximately 34.34% of PWV's total assets under management.
Performance and Risk
So far this year, PWV has gained about 0%, and was up about 29.86% in the last one year (as of 01/04/2022). During this past 52-week period, the fund has traded between $38.29 and $49.15.
The fund has a beta of 0.97 and standard deviation of 23.36% for the trailing three-year period, which makes PWV a medium risk choice in this particular space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $60.19 billion in assets, Vanguard Value ETF has $92.61 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
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 Value ETF (PWV) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Invesco Dynamic Large Cap Value ETF (PWV - Free Report) is a smart beta exchange traded fund launched on 03/03/2005.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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 $821.79 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. PWV is managed by Invesco. PWV seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
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.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.88%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
PWV's heaviest allocation is in the Financials sector, which is about 20.80% of the portfolio. Its Healthcare and Consumer Staples round out the top three.
When you look at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 3.73% of the fund's total assets, followed by Bank Of America Corp (BAC - Free Report) and Home Depot Inc/the (HD - Free Report) .
Its top 10 holdings account for approximately 34.34% of PWV's total assets under management.
Performance and Risk
So far this year, PWV has gained about 0%, and was up about 29.86% in the last one year (as of 01/04/2022). During this past 52-week period, the fund has traded between $38.29 and $49.15.
The fund has a beta of 0.97 and standard deviation of 23.36% for the trailing three-year period, which makes PWV a medium risk choice in this particular space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $60.19 billion in assets, Vanguard Value ETF has $92.61 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
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.