Is Invesco Large Cap Value ETF (PWV) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Invesco Large Cap Value ETF (PWV) is a smart beta exchange traded fund launched on 03/03/2005.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.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.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination 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 & IndexManaged by Invesco, PWV has amassed assets over $968.83 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. PWV, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Value Intellidex Index.The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.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.With one of the more expensive products in the space, this ETF has annual operating expenses of 0.53%.The fund has a 12-month trailing dividend yield of 2.41%.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.PWV's heaviest allocation is in the Financials sector, which is about 21.80% of the portfolio. Its Energy and Healthcare round out the top three.When you look at individual holdings, Abbvie Inc (ABBV) accounts for about 4.04% of the fund's total assets, followed by International Business Machines Corp (IBM) and Cisco Systems Inc (CSCO).The top 10 holdings account for about 35.47% of total assets under management.Performance and RiskThe ETF has lost about -2.47% so far this year and is up roughly 3.03% in the last one year (as of 04/15/2025). In the past 52-week period, it has traded between $52.26 and $61.73.The fund has a beta of 0.78 and standard deviation of 15.53% for the trailing three-year period, which makes PWV a medium risk choice in this particular space. With about 52 holdings, it effectively diversifies company-specific risk.AlternativesInvesco Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $66.21 billion in assets, Vanguard Value ETF has $127.95 billion. SCHD has an expense ratio of 0.06% and VTV 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 - Large 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 Large Cap Value ETF (PWV): ETF Research Reports International Business Machines Corporation (IBM): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks