Launched on 07/19/2012, the Invesco DWA SmallCap Momentum ETF (DWAS) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $436.09 M, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0.20%.
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.
This ETF has heaviest allocation to the Healthcare sector--about 33.90% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Mirati Therapeutics Inc (MRTX) accounts for about 1.67% of total assets, followed by Caredx Inc (CDNA) and Eplus Inc (PLUS).
The top 10 holdings account for about 13.81% of total assets under management.
Performance and Risk
DWAS seeks to match the performance of the Dorsey Wright SmallCap Technical Leaders Index before fees and expenses. The Index Provider determines a company?s relative strength characteristics based on that company market performance. The Index Provider selects approximately 200 companies for inclusion in the Underlying Index from a small-cap universe of approximately 2,000 of the smallest U.S. companies selected from a broader set of 3,000 companies.
The ETF has added roughly 17.82% so far this year and was up about 34.40% in the last one year (as of 08/24/2018). In the past 52-week period, it has traded between $42.79 and $57.38.
The ETF has a beta of 1.07 and standard deviation of 18.19% for the trailing three-year period, making it a high risk choice in the space. With about 200 holdings, it effectively diversifies company-specific risk.
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.
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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PWRSH-DWA SC MO (DWAS): ETF Research Reports
ePlus inc. (PLUS) : Free Stock Analysis Report
Mirati Therapeutics, Inc. (MRTX) : Free Stock Analysis Report
CareDx, Inc. (CDNA) : Free Stock Analysis Report
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