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Launched on 10/12/2006, the Invesco DWA Industrials Momentum ETF (PRN) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Broad segment of the equity market.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
The fund is sponsored by Invesco. It has amassed assets over $249.27 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PRN seeks to match the performance of the DWA Industrials Technical Leaders Index before fees and expenses.
The DWA Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
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 on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.09%.
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.
This ETF has heaviest allocation in the Industrials sector--about 90.50% of the portfolio.
Looking at individual holdings, Ametek Inc (AME) accounts for about 3.61% of total assets, followed by Generac Holdings Inc (GNRC) and Pool Corp (POOL).
The top 10 holdings account for about 33.11% of total assets under management.
Performance and Risk
The ETF has added roughly 11.15% so far this year and was up about 23.66% in the last one year (as of 10/13/2021). In that past 52-week period, it has traded between $73.83 and $108.63.
The ETF has a beta of 1.08 and standard deviation of 28.08% for the trailing three-year period, making it a medium risk choice in the space. With about 45 holdings, it has more concentrated exposure than peers.
Invesco DWA Industrials Momentum ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PRN is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.27 billion in assets, Industrial Select Sector SPDR ETF has $17.21 billion. VIS has an expense ratio of 0.10% and XLI charges 0.12%.
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 DWA Industrials Momentum ETF (PRN): ETF Research Reports
Pool Corporation (POOL) : Free Stock Analysis Report
AMETEK, Inc. (AME) : Free Stock Analysis Report
Vanguard Industrials ETF (VIS): ETF Research Reports
Industrial Select Sector SPDR ETF (XLI): ETF Research Reports
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
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