Making its debut on 03/03/2005, smart beta exchange traded fund Invesco Large Cap Growth ETF (PWB) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $1.53 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses.
The Dynamic Large Cap Growth Intellidex 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 this ETF are 0.55%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.00%.
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.
PWB's heaviest allocation is in the Information Technology sector, which is about 48.4% of the portfolio. Its Industrials and Financials round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 5.17% of total assets, followed by Walmart Inc (WMT) and Costco Wholesale Corp (COST).
Its top 10 holdings account for approximately 34.2% of PWB's total assets under management.
Performance and Risk
The ETF has added about 5.04% so far this year and is up about 25.84% in the last one year (as of 02/24/2026). In the past 52-week period, it has traded between $86.24 and $137.79
The fund has a beta of 1.16 and standard deviation of 18.13% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 53 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco 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 $193.72 billion in assets, Invesco QQQ has $392.27 billion. VUG has an expense ratio of 0.03% and QQQ changes 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 Large Cap Growth ETF (PWB): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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