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Is Invesco Building & Construction ETF (PKB) a Strong ETF Right Now?
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Designed to provide broad exposure to the Industrials ETFs category of the market, the Invesco Building & Construction ETF (PKB - Free Report) is a smart beta exchange traded fund launched on 10/26/2005.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
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.
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 sponsored by Invesco. It has amassed assets over $407.13 million, making it one of the average sized ETFs in the Industrials ETFs. PKB, before fees and expenses, 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.57% for PKB, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.15%.
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.
Representing 42% of the portfolio, the fund has heaviest allocation to the Industrials sector; Materials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Comfort Systems Usa Inc (FIX) accounts for about 5.34% of the fund's total assets, followed by Johnson Controls International Plc (JCI) and Home Depot Inc/the (HD).
PKB's top 10 holdings account for about 46.07% of its total assets under management.
Performance and Risk
The ETF return is roughly 6.3% and was up about 41.92% so far this year and in the past one year (as of 04/03/2026), respectively. PKB has traded between $62.05 and $110.50 during this last 52-week period.
PKB has a beta of 1.32 and standard deviation of 24.33% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 32 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 $1.45 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?
Designed to provide broad exposure to the Industrials ETFs category of the market, the Invesco Building & Construction ETF (PKB - Free Report) is a smart beta exchange traded fund launched on 10/26/2005.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
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.
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 sponsored by Invesco. It has amassed assets over $407.13 million, making it one of the average sized ETFs in the Industrials ETFs. PKB, before fees and expenses, 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.57% for PKB, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.15%.
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.
Representing 42% of the portfolio, the fund has heaviest allocation to the Industrials sector; Materials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Comfort Systems Usa Inc (FIX) accounts for about 5.34% of the fund's total assets, followed by Johnson Controls International Plc (JCI) and Home Depot Inc/the (HD).
PKB's top 10 holdings account for about 46.07% of its total assets under management.
Performance and Risk
The ETF return is roughly 6.3% and was up about 41.92% so far this year and in the past one year (as of 04/03/2026), respectively. PKB has traded between $62.05 and $110.50 during this last 52-week period.
PKB has a beta of 1.32 and standard deviation of 24.33% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 32 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 $1.45 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.