Should you invest in the Invesco DWA Technology Momentum ETF (PTF)?


Looking for Wide Exposure to Technology – Large Segment of the Equity Market? You should consider the Invesco DWA Technology Momentum (PTF) ETF, a passively managed exchange-traded fund launched on 12/10/2006.

Although they are 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. .

Investor-friendly sector ETFs provide many options for obtaining diversified, low-risk exposure to a broad group of companies in particular sectors. Technology – Broad is one of the 16 major Zacks sectors in the Zacks Industry classification. It is currently ranked 15, placing it in the bottom 6%.

Index Details

The fund is sponsored by Invesco. It has amassed over $ 273.39 million in assets, making it one of the mid-sized ETFs attempting to match the performance of the Technology – Large segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.

The DWA Technology Technical Leaders Index identifies companies that display relative strength and are made up of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US stock exchanges.

Fresh

Since cheaper funds tend to perform better than more expensive funds, assuming all other factors stay the same, it’s important for investors to pay attention to an ETF’s expense ratio.

This ETF’s annual operating expenses are 0.60%, making it comparable to most peer products in the space.

Sector exposure and main titles

ETFs offer diversified exposure and thus minimize the risk associated with individual stocks, but it is always important to delve into a fund’s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has the highest allocation to the Information Technology sector, accounting for approximately 98.50% of the portfolio.

When it comes to individual holdings, Intuit Inc (INTU) accounts for approximately 4.74% of total assets, followed by Epam Systems Inc (EPAM) and Docusign Inc (DOCU).

The top 10 holdings represent approximately 37.80% of total assets under management.

Return and risk

So far this year, PTF has gained around 5.48% and is up around 46.01% in the last year (as of 7/15/2021). Over the past 52 weeks the fund has traded between $ 98.15 and $ 172.99.

The ETF has a beta of 1.06 and a standard deviation of 36.63% for the three-year period, making it a high-risk choice in the space. With around 42 positions, he has more concentrated exposure than his peers.

Alternatives

The Invesco DWA Technology Momentum ETF has a Zacks ETF Rank of 3 (Hold), which is based on the expected return of the asset class, expense ratio and momentum, among other factors. Thus, PTF is a good option for those looking for exposure to the technology ETF sector of the market. Investors could also consider other ETF options in the space.

Technology Select Sector SPDR ETF (XLK) tracks the Technology Select Sector index and the Vanguard Information Technology ETF (VGT) tracks the MSCI US Investable Market Information Technology 25/50 index. Technology Select Sector SPDR ETF has $ 43.94 billion in assets, Vanguard Information Technology ETF has $ 48.13 billion. XLK has an expense ratio of 0.12% and VGT charges 0.10%.

Final result

To learn more about this and other ETFs, search for products that match your investment goals, and read articles on the latest developments in the ETF investing world, please visit the Zacks ETF Center.

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Invesco DWA Technology Momentum ETFs (PTF): ETF Research Reports

Intuit Inc. (INTU): Free Stock Analysis Report

EPAM Systems, Inc. (EPAM): Free Stock Analysis Report

Technology Select Sector SPDR ETF (XLK): ETF Research Reports

Vanguard Information Technology (VGT) ETFs: ETF Research Reports

DocuSign Inc. (DOCU): Free Stock Analysis Report

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