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Is Invesco High Yield Equity Dividend Achievers ETF (PEY) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco High Yield Equity Dividend Achievers ETF (PEY - Free Report) debuted on 12/09/2004, and offers broad exposure to the Style Box - All 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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
Because the fund has amassed over $1.1 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. PEY is managed by Invesco. Before fees and expenses, this particular fund seeks to match the performance of the NASDAQ US Dividend Achievers 50 Index.
The NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.
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.
Annual operating expenses for this ETF are 0.53%, making it on par with most peer products in the space.
PEY's 12-month trailing dividend yield is 4.67%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
PEY's heaviest allocation is in the Utilities sector, which is about 25% of the portfolio. Its Financials and Consumer Staples round out the top three.
Looking at individual holdings, Altria Group Inc (MO) accounts for about 3.63% of total assets, followed by Universal Corp/va (UVV) and Verizon Communications Inc (VZ).
Its top 10 holdings account for approximately 27.96% of PEY's total assets under management.
Performance and Risk
The ETF has lost about -3.46% and was up about 7.34% so far this year and in the past one year (as of 06/20/2025), respectively. PEY has traded between $18.68 and $23.08 during this last 52-week period.
The fund has a beta of 0.73 and standard deviation of 17.25% for the trailing three-year period, which makes PEY a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco High Yield Equity Dividend Achievers ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $5.38 billion in assets, iShares Core S&P U.S. Value ETF has $20.28 billion. FDVV has an expense ratio of 0.16% and IUSV changes 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 - All 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 High Yield Equity Dividend Achievers ETF (PEY) a Strong ETF Right Now?
A smart beta exchange traded fund, the Invesco High Yield Equity Dividend Achievers ETF (PEY - Free Report) debuted on 12/09/2004, and offers broad exposure to the Style Box - All 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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
Because the fund has amassed over $1.1 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. PEY is managed by Invesco. Before fees and expenses, this particular fund seeks to match the performance of the NASDAQ US Dividend Achievers 50 Index.
The NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.
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.
Annual operating expenses for this ETF are 0.53%, making it on par with most peer products in the space.
PEY's 12-month trailing dividend yield is 4.67%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
PEY's heaviest allocation is in the Utilities sector, which is about 25% of the portfolio. Its Financials and Consumer Staples round out the top three.
Looking at individual holdings, Altria Group Inc (MO) accounts for about 3.63% of total assets, followed by Universal Corp/va (UVV) and Verizon Communications Inc (VZ).
Its top 10 holdings account for approximately 27.96% of PEY's total assets under management.
Performance and Risk
The ETF has lost about -3.46% and was up about 7.34% so far this year and in the past one year (as of 06/20/2025), respectively. PEY has traded between $18.68 and $23.08 during this last 52-week period.
The fund has a beta of 0.73 and standard deviation of 17.25% for the trailing three-year period, which makes PEY a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco High Yield Equity Dividend Achievers ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $5.38 billion in assets, iShares Core S&P U.S. Value ETF has $20.28 billion. FDVV has an expense ratio of 0.16% and IUSV changes 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 - All 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.