Should Invesco Dynamic Large Cap Value ETF (PWV) Be on Your Investing Radar?

Should Invesco Dynamic Large Cap Value ETF (PWV) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco Dynamic Large Cap Value ETF (PWV) is a passively managed exchange traded fund launched on 03/03/2005.

The fund is sponsored by Invesco. It has amassed assets over $832.39 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.58%, making it one of the most expensive products in the space.

It has a 12-month trailing dividend yield of 1.97%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund’s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Healthcare sector–about 20.10% of the portfolio. Financials and Energy round out the top three.

Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.73% of total assets, followed by Bank Of America Corp (BAC) and Home Depot Inc/the (HD).

The top 10 holdings account for about 34.34% of total assets under management.

Performance and Risk

PWV seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses. The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.

The ETF has lost about -4.80% so far this year and was up about 12.66% in the last one year (as of 03/14/2022). In the past 52-week period, it has traded between $41.66 and $50.64.

The ETF has a beta of 0.93 and standard deviation of 23.50% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.

Alternatives Invesco Dynamic Large Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PWV is an excellent option for investors seeking exposure to the Style Box – Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $55.61 billion in assets, Vanguard Value ETF has $91.50 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%. Bottom-Line Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.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 . Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Click to get this free report Invesco Dynamic Large Cap Value ETF (PWV): ETF Research Reports Bank of America Corporation (BAC): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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