Should You Invest in the Invesco Building & Construction ETF (PKB)?

Looking for broad exposure to the Industrials - Engineering and Construction segment of the equity market? You should consider the Invesco Building & Construction ETF (PKB), a passively managed exchange traded fund launched on 10/26/2005.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Engineering and Construction is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $394.58 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Engineering and Construction segment of the equity market. PKB seeks to match the performance of the Dynamic Building & Construction Intellidex Index before fees and expenses.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.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.62%, making it one of the most expensive products in the space.It has a 12-month trailing dividend yield of 0.24%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Discretionary sector--about 38% of the portfolio. Industrials and Materials round out the top three.Looking at individual holdings, Trane Technologies Plc (TT) accounts for about 5.14% of total assets, followed by Carlisle Cos Inc (CSL) and Pultegroup Inc (PHM).The top 10 holdings account for about 45.54% of total assets under management.Performance and RiskThe ETF has added roughly 25.50% and was up about 68.81% so far this year and in the past one year (as of 10/29/2024), respectively. PKB has traded between $47.37 and $83.05 during this last 52-week period.The ETF has a beta of 1.34 and standard deviation of 26.15% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.AlternativesInvesco Building & Construction 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, PKB is a sufficient option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.SPDR S&P Homebuilders ETF (XHB) tracks S&P Homebuilders Select Industry Index. The fund has $2.13 billion in assets. XHB has an expense ratio of 0.35%.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 PulteGroup, Inc. (PHM): Free Stock Analysis Report Carlisle Companies Incorporated (CSL): Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports Trane Technologies plc (TT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks