Should You Invest in the Invesco Dorsey Wright Industrials Momentum ETF (PRN)?

Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Invesco Dorsey Wright Industrials Momentum ETF (PRN), a passively managed exchange traded fund launched on 10/12/2006.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.Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $337.71 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PRN seeks to match the performance of the DWA Industrials Technical Leaders Index before fees and expenses.The Dorsey Wright??Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.38%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation in the Industrials sector--about 89.70% of the portfolio. Materials and Financials round out the top three.Looking at individual holdings, Heico Corp (HEI) accounts for about 5.39% of total assets, followed by Parker-Hannifin Corp (PH) and Ww Grainger Inc (GWW).The top 10 holdings account for about 38.50% of total assets under management.Performance and RiskSo far this year, PRN has lost about -10.38%, and is down about -0.88% in the last one year (as of 03/31/2025). During this past 52-week period, the fund has traded between $130.51 and $177.75.The ETF has a beta of 1.16 and standard deviation of 22.94% for the trailing three-year period, making it a medium risk choice in the space. With about 44 holdings, it has more concentrated exposure than peers.AlternativesInvesco Dorsey Wright Industrials Momentum 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, PRN is a reasonable 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.Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.30 billion in assets, Industrial Select Sector SPDR ETF has $19.70 billion. VIS has an expense ratio of 0.09% and XLI charges 0.08%.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 Dorsey Wright Industrials Momentum ETF (PRN): ETF Research Reports Parker-Hannifin Corporation (PH): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Vanguard Industrials ETF (VIS): ETF Research Reports Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Heico Corporation (HEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks