Is Invesco Bloomberg Pricing Power ETF (POWA) a Strong ETF Right Now?

The Invesco Bloomberg Pricing Power ETF (POWA) was launched on 12/15/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.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.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexPOWA is managed by Invesco, and this fund has amassed over $217.48 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, this particular fund seeks to match the performance of the BLOOMBERG PRICING POWER INDEX .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.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.It's 12-month trailing dividend yield comes in at 0.00%.Sector Exposure and Top HoldingsETFs 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.Representing 26.2% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Information Technology and Industrials round out the top three.Taking into account individual holdings, Kla Corp (KLAC) accounts for about 2.72% of the fund's total assets, followed by Cardinal Health Inc (CAH) and Flex Ltd (FLEX).Its top 10 holdings account for approximately 23.96% of POWA's total assets under management.Performance and RiskThe ETF has added about 12.53% so far this year and was up about 6.61% in the last one year (as of 12/16/2025). In the past 52-week period, it has traded between $73.95 and $92.16POWA has a beta of 0.82 and standard deviation of 12.91% for the trailing three-year period. With about 53 holdings, it effectively diversifies company-specific risk .AlternativesInvesco Bloomberg Pricing Power ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $199.77 billion in assets, Invesco QQQ has $401.84 billion. VUG has an expense ratio of 0.04% and QQQ changes 0.20%.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 GrowthBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Bloomberg Pricing Power ETF (POWA): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks