We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the Invesco Dynamic Energy Exploration & Production ETF (PXE)?
Read MoreHide Full Article
Looking for broad exposure to the Energy - Exploration segment of the equity market? You should consider the Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report) , a passively managed exchange traded fund launched on 10/26/2005.
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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - Exploration is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $284.57 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Exploration segment of the equity market. PXE seeks to match the performance of the Dynamic Energy Exploration & Production Intellidex Index before fees and expenses.
The Dynamic Energy Exploration & Production Intellidex Index is composed of stocks of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy.
Costs
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 0.63%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 97.20% of the portfolio.
Looking at individual holdings, Occidental Petroleum Corp (OXY - Free Report) accounts for about 5.03% of total assets, followed by Diamondback Energy Inc (FANG - Free Report) and Marathon Petroleum Corp (MPC - Free Report) .
The top 10 holdings account for about 45.15% of total assets under management.
Performance and Risk
So far this year, PXE has added roughly 50.47%, and was up about 86.52% in the last one year (as of 09/09/2022). During this past 52-week period, the fund has traded between $16.44 and $36.33.
The ETF has a beta of 1.89 and standard deviation of 51.52% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Energy Exploration & Production ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PXE is an excellent option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Oil & Gas Exploration & Production ETF (IEO - Free Report) tracks Dow Jones U.S. Select Oil Exploration & Production Index and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) tracks S&P Oil & Gas Exploration & Production Select Industry Index. IShares U.S. Oil & Gas Exploration & Production ETF has $971.05 million in assets, SPDR S&P Oil & Gas Exploration & Production ETF has $4.59 billion. IEO has an expense ratio of 0.39% and XOP charges 0.35%.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the Invesco Dynamic Energy Exploration & Production ETF (PXE)?
Looking for broad exposure to the Energy - Exploration segment of the equity market? You should consider the Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report) , a passively managed exchange traded fund launched on 10/26/2005.
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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - Exploration is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $284.57 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Exploration segment of the equity market. PXE seeks to match the performance of the Dynamic Energy Exploration & Production Intellidex Index before fees and expenses.
The Dynamic Energy Exploration & Production Intellidex Index is composed of stocks of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy.
Costs
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 0.63%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 97.20% of the portfolio.
Looking at individual holdings, Occidental Petroleum Corp (OXY - Free Report) accounts for about 5.03% of total assets, followed by Diamondback Energy Inc (FANG - Free Report) and Marathon Petroleum Corp (MPC - Free Report) .
The top 10 holdings account for about 45.15% of total assets under management.
Performance and Risk
So far this year, PXE has added roughly 50.47%, and was up about 86.52% in the last one year (as of 09/09/2022). During this past 52-week period, the fund has traded between $16.44 and $36.33.
The ETF has a beta of 1.89 and standard deviation of 51.52% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Energy Exploration & Production ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PXE is an excellent option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Oil & Gas Exploration & Production ETF (IEO - Free Report) tracks Dow Jones U.S. Select Oil Exploration & Production Index and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) tracks S&P Oil & Gas Exploration & Production Select Industry Index. IShares U.S. Oil & Gas Exploration & Production ETF has $971.05 million in assets, SPDR S&P Oil & Gas Exploration & Production ETF has $4.59 billion. IEO has an expense ratio of 0.39% and XOP charges 0.35%.
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.