The Invesco DWA Know-how Momentum ETF (PTF) was launched on 10/12/2006, and is a passively managed exchange traded fund designed to present broad publicity to the Engineering – Wide phase of the equity marketplace.
While an excellent vehicle for extended phrase investors, passively managed ETFs are a well-liked alternative between institutional and retail buyers thanks to their minimal fees, transparency, flexibility, and tax efficiency.
Trader-pleasant, sector ETFs provide quite a few alternatives to get low possibility and diversified exposure to a wide team of firms in certain sectors. Technological innovation – Wide is just one of the 16 wide Zacks sectors inside of the Zacks Market classification. It is currently rated 10, placing it in bottom 38%.
The fund is sponsored by Invesco. It has amassed assets around $272.23 million, earning it 1 of the regular sized ETFs trying to match the efficiency of the Technology – Broad section of the fairness industry. PTF seeks to match the functionality of the DWA Technological know-how Specialized Leaders Index in advance of charges and charges.
The DWA Technologies Specialized Leaders Index identifies companies that are displaying relative toughness and are composed of at minimum 30 prevalent stocks from a universe of around 3,000 typical stocks traded on US exchanges.
Investors must also spend awareness to an ETF’s price ratio. Reduced price merchandise will make improved effects than those people with a larger price, assuming all other metrics continue to be the exact same.
Annual operating costs for this ETF are .60%, building it on par with most peer products and solutions in the house.
Sector Publicity and Best Holdings
Even nevertheless ETFs supply diversified publicity which minimizes single stock threat, it is continue to vital to appear into a fund’s holdings ahead of investing. Fortunately, most ETFs are very clear products and solutions that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information and facts Technological know-how sector–about 90.40% of the portfolio.
Looking at specific holdings, Digital Turbine Inc (Apps) accounts for about 7.67% of whole assets, adopted by Apple Inc (AAPL) and 59 Inc (FIVN).
The major 10 holdings account for about 47.98% of whole assets beneath management.
Efficiency and Risk
Yr-to-day, the Invesco DWA Technologies Momentum ETF has shed about -1.31% so much, and it’s up around 48.52% above the very last 12 months (as of 06/04/2021). PTF has traded amongst $88.46 and $172.99 in this earlier 52-week period.
The ETF has a beta of 1.05 and regular deviation of 36.62% for the trailing three-year interval, making it a substantial risk choice in the room. With about 37 holdings, it has much more concentrated publicity than friends.
Invesco DWA Engineering Momentum ETF carries a Zacks ETF Rank of 3 (Keep), which is dependent on predicted asset class return, cost ratio, and momentum, amid other things. Thus, PTF is a ample solution for all those in search of exposure to the Know-how ETFs space of the sector. Traders could possibly also want to look at some other ETF options in the area.
Know-how Select Sector SPDR ETF (XLK) tracks Know-how Pick Sector Index and the Vanguard Information and facts Engineering ETF (VGT) tracks MSCI US Investable Sector Info Technological know-how 25/50 Index. Technology Pick out Sector SPDR ETF has $39.09 billion in assets, Vanguard Info Technologies ETF has $43.20 billion. XLK has an expenditure ratio of .12% and VGT expenses .10%.
To study extra about this product and other ETFs, display screen for merchandise that match your investment goals and read articles on most up-to-date developments in the ETF investing universe, make sure you visit Zacks ETF Heart.
The views and viewpoints expressed herein are the views and viewpoints of the author and do not always mirror all those of Nasdaq, Inc.