The Invesco DWA SmallCap Momentum ETF (DWAS) was launched on 07/19/2012, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $404.98 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
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 0.21%.
Sector Exposure and Top Holdings
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 to the Healthcare sector--about 33.30% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Mirati Therapeutics Inc (MRTX) accounts for about 1.80% of total assets, followed by Axogen Inc (AXGN) and Eplus Inc (PLUS).
The top 10 holdings account for about 14.16% 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 11.62% so far this year and was up about 24.06% in the last one year (as of 08/01/2018). In the past 52-week period, it has traded between $42.17 and $57.13.
The ETF has a beta of 1.07 and standard deviation of 18.30% 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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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
AxoGen, Inc. (AXGN) : Free Stock Analysis Report
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