Is Invesco Large Cap Growth ETF (PWB) a Strong ETF Right Now?
The Invesco Large Cap Growth ETF (PWB) was launched on 03/03/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth category of the market.
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
The fund is managed by Invesco, and has been able to amass over $1.15 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
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 cousins, other things remaining the same.
Operating expenses on an annual basis are 0.53% for this ETF, which makes it on par with most peer products in the space.
PWB's 12-month trailing dividend yield is 0.07%.
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 28.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Netflix Inc (NFLX) accounts for about 3.98% of the fund's total assets, followed by Microsoft Corp (MSFT) and General Electric Co (GE).
PWB's top 10 holdings account for about 34.1% of its total assets under management.
Year-to-date, the Invesco Large Cap Growth ETF has added about 9.76% so far, and it's up approximately 20.35% over the last 12 months (as of 06/16/2025). PWB has traded between $86.24 and $113.22 in this past 52-week period.
PWB has a beta of 1.12 and standard deviation of 19.82% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Invesco Large Cap Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
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 $166.39 billion in assets, Invesco QQQ has $335.99 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.
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 Large Cap Growth ETF (PWB): ETF Research Reports
GE Aerospace (GE) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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