Yahoo Finance Should You Invest in the Invesco Dorsey Wright Technology Momentum ETF (PTF)?
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Invesco Dorsey Wright Technology Momentum ETF (PTF), a passively managed exchange traded fund launched on 10/12/2006.
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. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $420.56 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright??Technology 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
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 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.06%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 95.70% of the portfolio.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 4.81% of total assets, followed by Cadence Design Systems Inc (CDNS) and Kla Corp (KLAC).
The top 10 holdings account for about 41.03% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Dorsey Wright Technology Momentum ETF has added about 19.22% so far, and was up about 32.30% over the last 12 months (as of 05/28/2024). PTF has traded between $40.47 and $60.22 in this past 52-week period.
The ETF has a beta of 1.24 and standard deviation of 31.79% for the trailing three-year period, making it a high risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dorsey Wright Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PTF is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $66.72 billion in assets, Vanguard Information Technology ETF has $68.94 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
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 Technology Momentum ETF (PTF): ETF Research Reports
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
KLA Corporation (KLAC) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
