Should Invesco Large Cap Growth ETF (PWB) Be on Your Investing Radar?

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.The fund is sponsored by Invesco. It has amassed assets over $1.03 billion, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthLarge cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.53%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.08%.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.This ETF has heaviest allocation to the Information Technology sector--about 33.10% of the portfolio. Financials and Telecom round out the top three.Looking at individual holdings, Tesla Inc (TSLA) accounts for about 3.95% of total assets, followed by Alphabet Inc (GOOGL) and Amazon.com Inc (AMZN).The top 10 holdings account for about 35.86% of total assets under management.Performance and RiskPWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.The ETF return is roughly 5.53% so far this year and was up about 26.29% in the last one year (as of 02/04/2025). In the past 52-week period, it has traded between $83.83 and $108.37.The ETF has a beta of 1.04 and standard deviation of 20.31% 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.AlternativesInvesco Large Cap Growth 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, PWB is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $157.62 billion in assets, Invesco QQQ has $327.03 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Bottom-LineRetail 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 >>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 Growth ETF (PWB): ETF Research Reports Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL): Free Stock Analysis Report Vanguard Growth ETF (VUG): 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