Invesco Large Cap Growth ETF: An Overview of Performance and Strategy

Designed to give investors broad exposure to the Style Box – Large Cap Growth category, the Invesco Large Cap Growth ETF (PWB) is a smart beta exchange-traded fund that was launched on March 3, 2005.

Understanding Smart Beta ETFs

The ETF industry has primarily been characterized by products relying on market capitalization-weighted indexes, which aim to represent the overall market or specific segments. These market cap-weighted indexes provide a low-cost and transparent approach to replicating market returns, appealing to investors who believe in market efficiency.

However, some investors strive to surpass market returns through selective stock picking. This group typically invests in smart beta funds, which utilize strategies that do not rely solely on market capitalization. These indexes focus on selecting stocks based on fundamental characteristics that may enhance risk-return performance.

The smart beta space offers various options, ranging from simple equal-weighting strategies to more intricate approaches like fundamental and volatility/momentum-based weighting. It is essential to note that not all methodologies consistently deliver superior returns.

Fund Management and Index Details

Invesco manages the PWB ETF, which has accumulated over $908.85 million in assets, classifying it as an average-sized fund within the Style Box – Large Cap Growth category. PWB aims to match the performance of the Dynamic Large Cap Growth Intellidex Index, seeking capital appreciation while maintaining a stylistically accurate exposure.

Cost and Expenses

Cost plays a critical role in ETF selection. Funds with lower expenses often outperform their more costly counterparts when other fundamentals are similar. PWB’s annual operating expenses stand at 0.53%, comparable to most peers in the category. Additionally, the fund has a 12-month trailing dividend yield of 0.08%.

Sector Exposure and Holdings

While ETFs generally offer diversified investment opportunities, examining a fund’s holdings provides valuable insights. Most ETFs operate transparently, disclosing their holdings on a daily basis. PWB’s largest allocation is in the Information Technology sector, making up approximately 32.60% of the portfolio. The Financials and Telecom sectors complete the top three allocations.

Meta Platforms Inc (META) constitutes about 3.93% of the fund’s total assets, with Visa Inc (V) and T-Mobile US Inc (TMUS) also among its major holdings. Together, the top 10 holdings comprise around 36.31% of total assets under management.

Performance and Risk Assessment

As of April 15, 2025, the ETF has experienced a loss of approximately -7.30% this year, while showing an increase of about 7.18% over the past year. During the previous 52 weeks, the ETF has traded within a range of $83.83 to $110.71.

PWB has a beta of 1.10 and a standard deviation of 21.30% for the trailing three-year period, indicating it is a medium-risk option within this sector. With around 52 holdings, the fund effectively mitigates company-specific risk.

Exploring Alternatives

While the Invesco Large Cap Growth ETF offers a viable option for investors seeking to outperform the Style Box – Large Cap Growth segment, other ETFs could also be considered. The Vanguard Growth ETF (VUG) tracks the CRSP U.S. Large Cap Growth Index, while the Invesco QQQ (QQQ) follows the NASDAQ-100 Index. Vanguard Growth ETF manages $142.27 billion in assets, and Invesco QQQ manages $289.68 billion, with expense ratios of 0.04% and 0.20%, respectively.

Investors seeking lower-cost and lower-risk alternatives might consider traditional market-cap-weighted ETFs aimed at matching the returns of the Style Box – Large Cap Growth.

Conclusion

To gain further insights into this product and other ETFs, consider screening for options that align with your investment goals. Staying informed about the latest developments in the ETF landscape is crucial for making effective investment choices.

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Invesco Large Cap Growth ETF (PWB): ETF Research Reports

Visa Inc. (V): Free Stock Analysis Report

Invesco QQQ (QQQ): ETF Research Reports

T-Mobile US, Inc. (TMUS): Free Stock Analysis Report

Vanguard Growth ETF (VUG): ETF Research Reports

Meta Platforms, Inc. (META): Free Stock Analysis Report

This article originally appeared on Zacks Investment Research (zacks.com).

The views and opinions expressed herein belong to the author and do not necessarily reflect those of Nasdaq, Inc.