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

Designed to provide broad exposure to the Government Bond ETFs category of the market, the Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) is a smart beta exchange traded fund launched on 10/11/2007.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.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.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.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.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 & IndexThe fund is sponsored by Invesco. It has amassed assets over $991.29 million, making it one of the average sized ETFs in the Government Bond ETFs. This particular fund seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID before fees and expenses.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.Operating expenses on an annual basis are 0.15% for GOVI, making it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 3.63%.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.When you look at individual holdings, United States Treasury Note/bond-1.50%-02-15-2030 (912828Z94) accounts for about 3.44% of the fund's total assets, followed by United States Treasury Note/bond-1.88%-02-15-2032 (91282CDY4) and United States Treasury Note/bond-5.38%-02-15-2031 (912810FP8).GOVI's top 10 holdings account for about 34.13% of its total assets under management.Performance and RiskSo far this year, GOVI has gained about 6.39%, and is down about -2.08% in the last one year (as of 09/17/2025). During this past 52-week period, the fund has traded between $26.51 and $29.41.The fund has a beta of 0.33 and standard deviation of 9.31% 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.SPDR Portfolio Long Term Treasury ETF (SPTL) tracks Bloomberg Barclays Long U.S. Treasury Index and the iShares 20+ Year Treasury Bond ETF (TLT) tracks ICE U.S. Treasury 20+ Year Bond Index. SPDR Portfolio Long Term Treasury ETF has $11.84 billion in assets, iShares 20+ Year Treasury Bond ETF has $49.22 billion. SPTL has an expense ratio of 0.03% 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.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 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