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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?

Smart Beta ETF report for PWB

This story originally appeared on Zacks

The Invesco Dynamic Large Cap Growth ETF (PWB) made its debut on 03/03/2005, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.

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What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

The fund is managed by Invesco. PWB has been able to amass assets over $793.49 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses.

The Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.

Cost & Other Expenses

Since 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 PWB are 0.56%, which makes it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.06%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

PWB's heaviest allocation is in the Information Technology sector, which is about 27.20% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.

When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 4.16% of the fund's total assets, followed by Adobe Inc (ADBE) and Paypal Holdings Inc (PYPL).

PWB's top 10 holdings account for about 35.57% of its total assets under management.

Performance and Risk

Year-to-date, the Invesco Dynamic Large Cap Growth ETF return is roughly 12.10% so far, and is up about 20.34% over the last 12 months (as of 10/08/2021). PWB has traded between $60.08 and $79.06 in this past 52-week period.

The ETF has a beta of 0.92 and standard deviation of 24.50% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.


Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.

Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $83 billion in assets, Invesco QQQ has $185.01 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth.

Bottom Line

To 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.

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Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports


NVIDIA Corporation (NVDA): Free Stock Analysis Report


Adobe Inc. (ADBE): Free Stock Analysis Report


Invesco QQQ (QQQ): ETF Research Reports


PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report


Vanguard Growth ETF (VUG): ETF Research Reports


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