Is Invesco Building & Construction ETF (PKB) a Strong ETF Right Now?

The Invesco Building & Construction ETF (PKB) made its debut on 10/26/2005, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.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.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $289.2 million, which makes it one of the average sized ETFs in the Industrials ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Building & Construction Intellidex Index.The Dynamic Building & Construction Intellidex Index is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.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.Operating expenses on an annual basis are 0.57% for PKB, making it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 0.13%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.For PKB, it has heaviest allocation in the Industrials sector --about 56.2% of the portfolio --while Materials and Consumer Discretionary round out the top three.Taking into account individual holdings, Comfort Systems Usa Inc (FIX) accounts for about 6.59% of the fund's total assets, followed by Emcor Group Inc (EME) and Crh Plc (CRH).Its top 10 holdings account for approximately 47.3% of PKB's total assets under management.Performance and RiskYear-to-date, the Invesco Building & Construction ETF return is roughly 24.78% so far, and is up roughly 6.95% over the last 12 months (as of 11/26/2025). PKB has traded between $62.05 $99.05 in this past 52-week period. The fund has a beta of 1.31 and standard deviation of 24.09% for the trailing three-year period, which makes PKB a high risk choice in this particular space. With about 33 holdings, it has more concentrated exposure than peers .AlternativesInvesco Building & Construction ETF is not a suitable option for investors seeking to outperform the Industrials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.State Street SPDR S&P Homebuilders ETF(XHB) tracks S&P Homebuilders Select Industry Index The fund has $1.54 billion in assets. XHB has an expense ratio of 0.35%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFsBottom 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 Building & Construction ETF (PKB): 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