The Invesco Large Cap Value ETF (PWV) 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 Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking 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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, PWV has amassed assets over $1.36 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. PWV, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Value Intellidex Index.
The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
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.
Annual operating expenses for this ETF are 0.55%, making it on par with most peer products in the space.
PWV's 12-month trailing dividend yield is 2.00%.
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.
PWV's heaviest allocation is in the Financials sector, which is about 27.7% of the portfolio. Its Energy and Healthcare round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.04% of the fund's total assets, followed by Chevron Corp (CVX) and Johnson & Johnson (JNJ).
PWV's top 10 holdings account for about 35.16% of its total assets under management.
Performance and Risk
The ETF return is roughly 5.95% so far this year and is up about 18.09% in the last one year (as of 02/23/2026). In the past 52-week period, it has traded between $52.26 and $70.50
The ETF has a beta of 0.78 and standard deviation of 13.13% 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 .
Alternatives
Invesco Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $84.62 billion in assets, Vanguard Value ETF has $170.76 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
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 Value
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 Large Cap Value ETF (PWV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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