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Is Invesco Building & Construction ETF (PKB) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco Building & Construction ETF (PKB - Free Report) debuted on 10/26/2005, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
PKB is managed by Invesco, and this fund has amassed over $230.50 million, which makes it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, this particular fund seeks to match the performance of the Dynamic Building & Construction Intellidex Index.
The Dynamic Building & Construction Intellidex Index is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
PKB's 12-month trailing dividend yield is 0.19%.
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.
PKB's heaviest allocation is in the Industrials sector, which is about 57.20% of the portfolio. Its Materials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Martin Marietta Materials Inc (MLM - Free Report) accounts for about 5.33% of the fund's total assets, followed by Vulcan Materials Co (VMC - Free Report) and Trane Technologies Plc (TT - Free Report) .
PKB's top 10 holdings account for about 46.24% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Building & Construction ETF has added roughly 4.90% so far, and is up about 9.88% over the last 12 months (as of 05/19/2025). PKB has traded between $62.05 and $88.37 in this past 52-week period.
PKB has a beta of 1.27 and standard deviation of 26.47% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Building & Construction ETF is not a suitable option for investors seeking to outperform the Industrials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
SPDR S&P Homebuilders ETF (XHB - Free Report) tracks S&P Homebuilders Select Industry Index. The fund has $1.26 billion in assets. XHB has an expense ratio of 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs.
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 Building & Construction ETF (PKB) a Strong ETF Right Now?
A smart beta exchange traded fund, the Invesco Building & Construction ETF (PKB - Free Report) debuted on 10/26/2005, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
PKB is managed by Invesco, and this fund has amassed over $230.50 million, which makes it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, this particular fund seeks to match the performance of the Dynamic Building & Construction Intellidex Index.
The Dynamic Building & Construction Intellidex Index is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
PKB's 12-month trailing dividend yield is 0.19%.
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.
PKB's heaviest allocation is in the Industrials sector, which is about 57.20% of the portfolio. Its Materials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Martin Marietta Materials Inc (MLM - Free Report) accounts for about 5.33% of the fund's total assets, followed by Vulcan Materials Co (VMC - Free Report) and Trane Technologies Plc (TT - Free Report) .
PKB's top 10 holdings account for about 46.24% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Building & Construction ETF has added roughly 4.90% so far, and is up about 9.88% over the last 12 months (as of 05/19/2025). PKB has traded between $62.05 and $88.37 in this past 52-week period.
PKB has a beta of 1.27 and standard deviation of 26.47% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Building & Construction ETF is not a suitable option for investors seeking to outperform the Industrials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
SPDR S&P Homebuilders ETF (XHB - Free Report) tracks S&P Homebuilders Select Industry Index. The fund has $1.26 billion in assets. XHB has an expense ratio of 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs.
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.