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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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Making its debut on 03/03/2005, smart beta exchange traded fund Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
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.
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.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $569.29 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. 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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.56% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 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.
For PWB, it has heaviest allocation in the Information Technology sector --about 48.40% of the portfolio --while Healthcare and Energy round out the top three.
When you look at individual holdings, Chevron Corp (CVX - Free Report) accounts for about 3.92% of the fund's total assets, followed by Eli Lilly & Co (LLY - Free Report) and Costco Wholesale Corp (COST - Free Report) .
Its top 10 holdings account for approximately 34.3% of PWB's total assets under management.
Performance and Risk
So far this year, PWB has lost about -24.19%, and is down about -13.91% in the last one year (as of 06/13/2022). During this past 52-week period, the fund has traded between $59.48 and $82.12.
The fund has a beta of 0.98 and standard deviation of 26.41% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 51 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 $66.77 billion in assets, Invesco QQQ has $158.08 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?
Making its debut on 03/03/2005, smart beta exchange traded fund Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
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.
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.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $569.29 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. 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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.56% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 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.
For PWB, it has heaviest allocation in the Information Technology sector --about 48.40% of the portfolio --while Healthcare and Energy round out the top three.
When you look at individual holdings, Chevron Corp (CVX - Free Report) accounts for about 3.92% of the fund's total assets, followed by Eli Lilly & Co (LLY - Free Report) and Costco Wholesale Corp (COST - Free Report) .
Its top 10 holdings account for approximately 34.3% of PWB's total assets under management.
Performance and Risk
So far this year, PWB has lost about -24.19%, and is down about -13.91% in the last one year (as of 06/13/2022). During this past 52-week period, the fund has traded between $59.48 and $82.12.
The fund has a beta of 0.98 and standard deviation of 26.41% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 51 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 $66.77 billion in assets, Invesco QQQ has $158.08 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.