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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Managed by Invesco, PWB has amassed assets over $603.63 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
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 0.55% for this ETF, which makes it on par with most peer products in the space.
PWB's 12-month trailing dividend yield is 0.40%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
PWB's heaviest allocation is in the Information Technology sector, which is about 29.70% of the portfolio. Its Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Salesforce Inc (CRM - Free Report) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT - Free Report) and Apple Inc (AAPL - Free Report) .
Its top 10 holdings account for approximately 34.92% of PWB's total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Large Cap Growth ETF has gained about 9.72% so far, and was up about 0.24% over the last 12 months (as of 04/25/2023). PWB has traded between $56.26 and $68.41 in this past 52-week period.
PWB has a beta of 1.01 and standard deviation of 23.11% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 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 $81.22 billion in assets, Invesco QQQ has $169.41 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?
Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Managed by Invesco, PWB has amassed assets over $603.63 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
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 0.55% for this ETF, which makes it on par with most peer products in the space.
PWB's 12-month trailing dividend yield is 0.40%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
PWB's heaviest allocation is in the Information Technology sector, which is about 29.70% of the portfolio. Its Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Salesforce Inc (CRM - Free Report) accounts for about 3.87% of the fund's total assets, followed by Microsoft Corp (MSFT - Free Report) and Apple Inc (AAPL - Free Report) .
Its top 10 holdings account for approximately 34.92% of PWB's total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Large Cap Growth ETF has gained about 9.72% so far, and was up about 0.24% over the last 12 months (as of 04/25/2023). PWB has traded between $56.26 and $68.41 in this past 52-week period.
PWB has a beta of 1.01 and standard deviation of 23.11% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 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 $81.22 billion in assets, Invesco QQQ has $169.41 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.