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Should You Invest in the Invesco DWA Basic Materials Momentum ETF (PYZ)?
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Looking for broad exposure to the Materials - Broad segment of the equity market? You should consider the Invesco DWA Basic Materials Momentum ETF (PYZ - Free Report) , a passively managed exchange traded fund launched on 10/12/2006.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $229.15 million, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the equity market. PYZ seeks to match the performance of the DWA Basic Materials Technical Leaders Index before fees and expenses.
The Dorsey Wright??Basic Materials Technical Leaders Index identifies companies that show relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
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.
It has a 12-month trailing dividend yield of 0.37%.
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 Materials sector--about 98% of the portfolio.
Looking at individual holdings, Mosaic Co/the (MOS - Free Report) accounts for about 4.34% of total assets, followed by Cleveland-Cliffs Inc (CLF - Free Report) and Livent Corp .
The top 10 holdings account for about 35.91% of total assets under management.
Performance and Risk
Year-to-date, the Invesco DWA Basic Materials Momentum ETF return is roughly 4.43% so far, and it's up approximately 19.37% over the last 12 months (as of 04/01/2022). PYZ has traded between $80.03 and $100.85 in this past 52-week period.
The ETF has a beta of 1.33 and standard deviation of 32.87% for the trailing three-year period, making it a high risk choice in the space. With about 48 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Basic Materials 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, PYZ is a sufficient option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Materials Select Sector SPDR ETF (XLB - Free Report) tracks Materials Select Sector Index and the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR - Free Report) tracks Morningstar Global Upstream Natural Resources Index. Materials Select Sector SPDR ETF has $7.67 billion in assets, FlexShares Morningstar Global Upstream Natural Resources ETF has $8.18 billion. XLB has an expense ratio of 0.10% and GUNR charges 0.46%.
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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Should You Invest in the Invesco DWA Basic Materials Momentum ETF (PYZ)?
Looking for broad exposure to the Materials - Broad segment of the equity market? You should consider the Invesco DWA Basic Materials Momentum ETF (PYZ - Free Report) , a passively managed exchange traded fund launched on 10/12/2006.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $229.15 million, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the equity market. PYZ seeks to match the performance of the DWA Basic Materials Technical Leaders Index before fees and expenses.
The Dorsey Wright??Basic Materials Technical Leaders Index identifies companies that show relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
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.
It has a 12-month trailing dividend yield of 0.37%.
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 Materials sector--about 98% of the portfolio.
Looking at individual holdings, Mosaic Co/the (MOS - Free Report) accounts for about 4.34% of total assets, followed by Cleveland-Cliffs Inc (CLF - Free Report) and Livent Corp .
The top 10 holdings account for about 35.91% of total assets under management.
Performance and Risk
Year-to-date, the Invesco DWA Basic Materials Momentum ETF return is roughly 4.43% so far, and it's up approximately 19.37% over the last 12 months (as of 04/01/2022). PYZ has traded between $80.03 and $100.85 in this past 52-week period.
The ETF has a beta of 1.33 and standard deviation of 32.87% for the trailing three-year period, making it a high risk choice in the space. With about 48 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Basic Materials 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, PYZ is a sufficient option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Materials Select Sector SPDR ETF (XLB - Free Report) tracks Materials Select Sector Index and the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR - Free Report) tracks Morningstar Global Upstream Natural Resources Index. Materials Select Sector SPDR ETF has $7.67 billion in assets, FlexShares Morningstar Global Upstream Natural Resources ETF has $8.18 billion. XLB has an expense ratio of 0.10% and GUNR charges 0.46%.
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.