雅虎香港財經 Should Invesco Bloomberg Pricing Power ETF (POWA) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Bloomberg Pricing Power ETF (POWA) is a passively managed exchange traded fund launched on 12/15/2006.
The fund is sponsored by Invesco. It has amassed assets over $200.08 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 34.30% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Waters Corp (WAT) accounts for about 2.25% of total assets, followed by Autodesk Inc (ADSK) and Dollar Tree Inc (DLTR).
The top 10 holdings account for about 21.72% of total assets under management.
Performance and Risk
POWA seeks to match the performance of the BLOOMBERG PRICING POWER INDEX before fees and expenses. The Bloomberg Pricing Power Index composes of U.S. large and mid-capitalization companies that are well-positioned to maintain stable profit margins in all market conditions while focusing on companies that have the smallest deviations among their annual gross profit margins over the last five years.
The ETF has added roughly 2.64% so far this year and it's up approximately 0% in the last one year (as of 02/13/2024). In the past 52-week period, it has traded between $63.22 and $74.30.
The ETF has a beta of 0.85. With about 50 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Bloomberg Pricing Power 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, POWA is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $113.53 billion in assets, Invesco QQQ has $249.01 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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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Invesco Bloomberg Pricing Power ETF (POWA): ETF Research Reports
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
Waters Corporation (WAT) : Free Stock Analysis Report
Autodesk, Inc. (ADSK) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
