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The Invesco Dynamic Large Cap Value ETF (PWV) was launched on 03/03/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $728.92 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Investors 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 0.58%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 2.34%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 25.50% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.67% of total assets, followed by Johnson & Johnson (JNJ) and Walmart Inc (WMT).
The top 10 holdings account for about 34.23% of total assets under management.
Performance and Risk
PWV 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 lost about -10.64% so far this year and is up roughly 1.45% in the last one year (as of 07/19/2022). In the past 52-week period, it has traded between $42.71 and $50.64.
The ETF has a beta of 0.91 and standard deviation of 24.21% 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.