Is Invesco Building & Construction ETF (PKB) a Strong ETF Right Now?

The Invesco Building & Construction ETF (PKB) made its debut on 10/26/2005, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.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.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.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $252.51 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 ExpensesSince 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.Operating expenses on an annual basis are 0.57% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 0.25%.Sector Exposure and Top HoldingsMost 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.This ETF has heaviest allocation in the Industrials sector - about 43.60% of the portfolio. Materials and Consumer Discretionary round out the top three.Looking at individual holdings, Crh Plc (CRH) accounts for about 5.47% of total assets, followed by Home Depot Inc/the (HD) and Vulcan Materials Co (VMC).The top 10 holdings account for about 47.24% of total assets under management.Performance and RiskThe ETF has lost about -9.34% and is down about -1.48% so far this year and in the past one year (as of 03/17/2025), respectively. PKB has traded between $66.28 and $88.37 during this last 52-week period.The fund has a beta of 1.42 and standard deviation of 26.09% for the trailing three-year period, which makes PKB a high risk choice in this particular space. With about 31 holdings, it has more concentrated exposure than peers.AlternativesInvesco Building & Construction ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.SPDR S&P Homebuilders ETF (XHB) tracks S&P Homebuilders Select Industry Index. The fund has $1.43 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 LineTo 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 >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Building & Construction ETF (PKB): ETF Research Reports The Home Depot, Inc. (HD): Free Stock Analysis Report Vulcan Materials Company (VMC): Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports CRH PLC (CRH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks