Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Invesco Large Cap Value ETF (PWV) is a smart beta exchange traded fund launched on 03/03/2005.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is sponsored by Invesco. It has amassed assets over $1.86 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses.

The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for PWV are 0.55%, which makes it on par with most peer products in the space.

PWV's 12-month trailing dividend yield is 1.62%.

Sector Exposure and Top Holdings

ETFs offer 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.

PWV's heaviest allocation is in the Financials sector, which is about 33.3% of the portfolio. Its Healthcare and Energy round out the top three.

Looking at individual holdings, Bank Of America Corp (BAC) accounts for about 3.79% of total assets, followed by Jpmorgan Chase & Co (JPM) and Abbvie Inc (ABBV).

Its top 10 holdings account for approximately 34.57% of PWV's total assets under management.

Performance and Risk

The ETF has added about 23.94% and is up roughly 28.7% so far this year and in the past one year (as of 08/31/2026), respectively. PWV has traded between $63.56 and $82.57 during this last 52-week period.

The ETF has a beta of 0.71 and standard deviation of 12.73% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco Large Cap Value ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.

Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $111.65 billion in assets, Vanguard Morningstar Value ETF has $192.47 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value

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

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Invesco Large Cap Value ETF (PWV): ETF Research Reports

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

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