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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?
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Invesco. PKB has been able to amass assets over $284.27 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, PKB 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.57%.
It's 12-month trailing dividend yield comes in at 0.20%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PKB, it has heaviest allocation in the Industrials sector --about 53.4% of the portfolio --while Materials and Consumer Discretionary round out the top three.
Looking at individual holdings, Quanta Services Inc (PWR) accounts for about 5.23% of total assets, followed by Comfort Systems Usa Inc (FIX) and Johnson Controls International Plc (JCI).
PKB's top 10 holdings account for about 46.38% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Building & Construction ETF has added about 0.21% so far, and is down about -2.77% over the last 12 months (as of 10/05/2026). PKB has traded between $88.96 $113.97 in this past 52-week period.
The fund has a beta of 1.27 and standard deviation of 24.83% 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 $1.44 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?
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Invesco. PKB has been able to amass assets over $284.27 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, PKB 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.57%.
It's 12-month trailing dividend yield comes in at 0.20%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PKB, it has heaviest allocation in the Industrials sector --about 53.4% of the portfolio --while Materials and Consumer Discretionary round out the top three.
Looking at individual holdings, Quanta Services Inc (PWR) accounts for about 5.23% of total assets, followed by Comfort Systems Usa Inc (FIX) and Johnson Controls International Plc (JCI).
PKB's top 10 holdings account for about 46.38% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Building & Construction ETF has added about 0.21% so far, and is down about -2.77% over the last 12 months (as of 10/05/2026). PKB has traded between $88.96 $113.97 in this past 52-week period.
The fund has a beta of 1.27 and standard deviation of 24.83% 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 $1.44 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.