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Is Invesco Dynamic Large Cap Value ETF (PWV) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco Dynamic Large Cap Value ETF (PWV - Free Report) debuted on 03/03/2005, and offers broad exposure to the Style Box - Large Cap Value 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $753.45 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. 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
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 0.55% for this ETF, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.46%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For PWV, it has heaviest allocation in the Healthcare sector --about 29.60% of the portfolio --while Financials and Consumer Staples round out the top three.
Taking into account individual holdings, Pfizer Inc (PFE - Free Report) accounts for about 3.60% of the fund's total assets, followed by Merck & Co Inc (MRK - Free Report) and Philip Morris International Inc (PM - Free Report) .
PWV's top 10 holdings account for about 34.53% of its total assets under management.
Performance and Risk
So far this year, PWV has lost about -6.97%, and is down about -7.72% in the last one year (as of 03/20/2023). During this past 52-week period, the fund has traded between $41.65 and $50.01.
The ETF has a beta of 0.88 and standard deviation of 20.76% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
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 $48.49 billion in assets, Vanguard Value ETF has $97.23 billion. IWD has an expense ratio of 0.18% 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?
A smart beta exchange traded fund, the Invesco Dynamic Large Cap Value ETF (PWV - Free Report) debuted on 03/03/2005, and offers broad exposure to the Style Box - Large Cap Value 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $753.45 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. 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
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 0.55% for this ETF, which makes it one of the more expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.46%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For PWV, it has heaviest allocation in the Healthcare sector --about 29.60% of the portfolio --while Financials and Consumer Staples round out the top three.
Taking into account individual holdings, Pfizer Inc (PFE - Free Report) accounts for about 3.60% of the fund's total assets, followed by Merck & Co Inc (MRK - Free Report) and Philip Morris International Inc (PM - Free Report) .
PWV's top 10 holdings account for about 34.53% of its total assets under management.
Performance and Risk
So far this year, PWV has lost about -6.97%, and is down about -7.72% in the last one year (as of 03/20/2023). During this past 52-week period, the fund has traded between $41.65 and $50.01.
The ETF has a beta of 0.88 and standard deviation of 20.76% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
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 $48.49 billion in assets, Vanguard Value ETF has $97.23 billion. IWD has an expense ratio of 0.18% 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.