Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?

The Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) made its debut on 10/11/2007, and is a smart beta exchange traded fund that provides broad exposure to the Government Bond ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track 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.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexManaged by Invesco, GOVI has amassed assets over $927.82 million, making it one of the average sized ETFs in the Government Bond ETFs. Before fees and expenses, GOVI seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID.The ICE 1-30 Year Laddered Maturity US Treasury Index is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Annual operating expenses for GOVI are 0.15%, which makes it on par with most peer products in the space.It has a 12-month trailing dividend yield of 3.69%.Sector Exposure and Top HoldingsWhile 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.Taking into account individual holdings, United States Treasury Note/bond-1.50%-02-15-2030 (912828Z94) accounts for about 3.45% of the fund's total assets, followed by United States Treasury Note/bond-5.25%-02-15-2029 (912810FG8) and United States Treasury Note/bond-5.38%-02-15-2031 (912810FP8).The top 10 holdings account for about 34.26% of total assets under management.Performance and RiskSo far this year, GOVI has gained about 1.78%, and is down about -0.36% in the last one year (as of 07/15/2025). During this past 52-week period, the fund has traded between $26.51 and $29.71.The fund has a beta of 0.31 and standard deviation of 9.50% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers .AlternativesInvesco Equal Weight 0-30 Year Treasury ETF is not a suitable option for investors seeking to outperform the Government Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.iShares 10-20 Year Treasury Bond ETF (TLH) tracks ICE U.S Treasury 10-20 Year Bond Index and the iShares 20+ Year Treasury Bond ETF (TLT) tracks ICE U.S. Treasury 20+ Year Bond Index. iShares 10-20 Year Treasury Bond ETF has $11.31 billion in assets, iShares 20+ Year Treasury Bond ETF has $47 billion. TLH has an expense ratio of 0.15% and TLT changes 0.15%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 Equal Weight 0-30 Year Treasury ETF (GOVI): 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