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Is Invesco Building & Construction ETF (PKB) a Strong ETF Right Now?
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Launched on 10/26/2005, the Invesco Building & Construction ETF (PKB - Free Report) is a smart beta exchange traded fund offering broad exposure to the Industrials ETFs 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.
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.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $316.21 million, which makes it one of the average sized ETFs in the Industrials ETFs. This particular fund seeks to match the performance of the Dynamic Building & Construction Intellidex Index before fees and expenses.
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
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 PKB are 0.57%, which makes it on par with most peer products in the space.
PKB's 12-month trailing dividend yield is 0.13%.
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 PKB, it has heaviest allocation in the Industrials sector --about 46.9% of the portfolio --while Materials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Amrize Ltd (AMRZ) accounts for about 5.39% of the fund's total assets, followed by Crh Plc (CRH) and Pultegroup Inc (PHM).
Its top 10 holdings account for approximately 45.86% of PKB's total assets under management.
Performance and Risk
So far this year, PKB return is roughly 8.35%, and was up about 31.39% in the last one year (as of 01/30/2026). During this past 52-week period, the fund has traded between $62.05 and $101.57.
The fund has a beta of 1.33 and standard deviation of 24.07% for the trailing three-year period, which makes PKB a high risk choice in this particular space. With about 33 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.
State Street SPDR S&P Homebuilders ETF(XHB) tracks S&P Homebuilders Select Industry Index The fund has $1.77 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?
Launched on 10/26/2005, the Invesco Building & Construction ETF (PKB - Free Report) is a smart beta exchange traded fund offering broad exposure to the Industrials ETFs 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.
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.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $316.21 million, which makes it one of the average sized ETFs in the Industrials ETFs. This particular fund seeks to match the performance of the Dynamic Building & Construction Intellidex Index before fees and expenses.
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
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 PKB are 0.57%, which makes it on par with most peer products in the space.
PKB's 12-month trailing dividend yield is 0.13%.
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 PKB, it has heaviest allocation in the Industrials sector --about 46.9% of the portfolio --while Materials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Amrize Ltd (AMRZ) accounts for about 5.39% of the fund's total assets, followed by Crh Plc (CRH) and Pultegroup Inc (PHM).
Its top 10 holdings account for approximately 45.86% of PKB's total assets under management.
Performance and Risk
So far this year, PKB return is roughly 8.35%, and was up about 31.39% in the last one year (as of 01/30/2026). During this past 52-week period, the fund has traded between $62.05 and $101.57.
The fund has a beta of 1.33 and standard deviation of 24.07% for the trailing three-year period, which makes PKB a high risk choice in this particular space. With about 33 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.
State Street SPDR S&P Homebuilders ETF(XHB) tracks S&P Homebuilders Select Industry Index The fund has $1.77 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.