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

Launched on 03/03/2005, the Invesco Large Cap Value ETF (PWV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $1 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that fall in the large cap category tend to 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.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.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 0.55%, making it one of the more expensive products in the space.It has a 12-month trailing dividend yield of 1.98%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 27.50% of the portfolio. Energy and Healthcare round out the top three.Looking at individual holdings, International Business Machines Corp (IBM) accounts for about 3.70% of total assets, followed by Verizon Communications Inc (VZ) and Exxon Mobil Corp (XOM).The top 10 holdings account for about 33.52% of total assets under management.Performance and RiskPWV 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 added about 17.02% so far this year and was up about 32.82% in the last one year (as of 10/28/2024). In the past 52-week period, it has traded between $44.60 and $59.81.The ETF has a beta of 0.86 and standard deviation of 14.47% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.AlternativesInvesco Large Cap Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PWV is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $62.90 billion in assets, Vanguard Value ETF has $127.92 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.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 Value ETF (PWV): ETF Research Reports International Business Machines Corporation (IBM): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): 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