Yahoo Finance Should You Invest in the Invesco Dorsey Wright Industrials Momentum ETF (PRN)?
Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Invesco Dorsey Wright Industrials Momentum ETF (PRN), a passively managed exchange traded fund launched on 10/12/2006.
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.
Additionally, sector ETFs offer convenient 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $232.60 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 Dorsey Wright??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.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.35%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still 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 heaviest allocation in the Industrials sector--about 92.60% of the portfolio.
Looking at individual holdings, Cintas Corp (CTAS) accounts for about 4.01% of total assets, followed by Hubbell Inc (HUBB) and Copart Inc (CPRT).
The top 10 holdings account for about 34.98% of total assets under management.
Performance and Risk
The ETF has added roughly 16.43% so far this year and it's up approximately 43.82% in the last one year (as of 05/23/2024). In that past 52-week period, it has traded between $93.51 and $140.21.
The ETF has a beta of 1.10 and standard deviation of 22.41% for the trailing three-year period, making it a medium risk choice in the space. With about 42 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dorsey Wright Industrials Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PRN is a good option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $5.37 billion in assets, Industrial Select Sector SPDR ETF has $18.59 billion. VIS has an expense ratio of 0.10% and XLI charges 0.09%.
Bottom Line
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 Dorsey Wright Industrials Momentum ETF (PRN): ETF Research Reports
Cintas Corporation (CTAS) : Free Stock Analysis Report
Copart, Inc. (CPRT) : Free Stock Analysis Report
Vanguard Industrials ETF (VIS): ETF Research Reports
Industrial Select Sector SPDR ETF (XLI): ETF Research Reports
Hubbell Inc (HUBB) : Free Stock Analysis Report
