Is Invesco High Yield Equity Dividend Achievers ETF (PEY) a Strong ETF Right Now?

The Invesco High Yield Equity Dividend Achievers ETF (PEY) made its debut on 12/09/2004, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.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.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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 & IndexThe fund is managed by Invesco. PEY has been able to amass assets over $1.22 billion, making it one of the largest ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ US Dividend Achievers 50 Index.The NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Annual operating expenses for this ETF are 0.53%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 4.33%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.For PEY, it has heaviest allocation in the Utilities sector --about 24.40% of the portfolio --while Financials and Consumer Staples round out the top three.Taking into account individual holdings, Walgreens Boots Alliance Inc (WBA) accounts for about 4.47% of the fund's total assets, followed by Pfizer Inc (PFE) and Altria Group Inc (MO).The top 10 holdings account for about 28.74% of total assets under management.Performance and RiskYear-to-date, the Invesco High Yield Equity Dividend Achievers ETF has added about 2.98% so far, and is up roughly 16.63% over the last 12 months (as of 02/14/2025). PEY has traded between $19.30 and $23.08 in this past 52-week period.PEY has a beta of 0.87 and standard deviation of 16.55% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.AlternativesInvesco High Yield Equity Dividend Achievers ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.Capital Group Dividend Value ETF (CGDV) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Capital Group Dividend Value ETF has $13.82 billion in assets, iShares Core S&P U.S. Value ETF has $20.19 billion. CGDV has an expense ratio of 0.33% and IUSV charges 0.04%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.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 High Yield Equity Dividend Achievers ETF (PEY): ETF Research Reports Pfizer Inc. (PFE): Free Stock Analysis Report Altria Group, Inc. (MO): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Capital Group Dividend Value ETF (CGDV): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks