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Should You Invest in the Invesco Dynamic Energy Exploration & Production ETF (PXE)?
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If you're interested in broad exposure to the Energy - Exploration segment of the equity market, look no further than 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 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $299.52 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 3.11%.
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 Energy sector--about 97.30% of the portfolio.
Looking at individual holdings, Chord Energy Corp (CHRD - Free Report) accounts for about 5.56% of total assets, followed by Occidental Petroleum Corp (OXY - Free Report) and Marathon Petroleum Corp (MPC - Free Report) .
The top 10 holdings account for about 47.66% of total assets under management.
Performance and Risk
The ETF has lost about -2.64% and is up roughly 39.29% so far this year and in the past one year (as of 01/09/2023), respectively. PXE has traded between $21.15 and $36.33 during this last 52-week period.
The ETF has a beta of 1.83 and standard deviation of 52.35% for the trailing three-year period, making it a high risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Energy Exploration & Production 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, PXE is an outstanding 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 $1.05 billion in assets, SPDR S&P Oil & Gas Exploration & Production ETF has $4.56 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.
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Should You Invest in the Invesco Dynamic Energy Exploration & Production ETF (PXE)?
If you're interested in broad exposure to the Energy - Exploration segment of the equity market, look no further than 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 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $299.52 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 3.11%.
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 Energy sector--about 97.30% of the portfolio.
Looking at individual holdings, Chord Energy Corp (CHRD - Free Report) accounts for about 5.56% of total assets, followed by Occidental Petroleum Corp (OXY - Free Report) and Marathon Petroleum Corp (MPC - Free Report) .
The top 10 holdings account for about 47.66% of total assets under management.
Performance and Risk
The ETF has lost about -2.64% and is up roughly 39.29% so far this year and in the past one year (as of 01/09/2023), respectively. PXE has traded between $21.15 and $36.33 during this last 52-week period.
The ETF has a beta of 1.83 and standard deviation of 52.35% for the trailing three-year period, making it a high risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Energy Exploration & Production 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, PXE is an outstanding 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 $1.05 billion in assets, SPDR S&P Oil & Gas Exploration & Production ETF has $4.56 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.