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Launched on 10/12/2006, the Invesco DWA Technology Momentum ETF (PTF) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $200.21 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright??Technology 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.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
Even 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 in the Information Technology sector--about 98.30% of the portfolio.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.02% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Lattice Semiconductor Corp (LSCC).
The top 10 holdings account for about 39.92% of total assets under management.
Performance and Risk
So far this year, PTF has lost about -27.66%, and is down about -19.22% in the last one year (as of 07/22/2022). During this past 52-week period, the fund has traded between $105.79 and $184.09.
The ETF has a beta of 1.16 and standard deviation of 39.41% for the trailing three-year period, making it a high risk choice in the space. With about 35 holdings, it has more concentrated exposure than peers.