Should You Invest in the Invesco Dorsey Wright Industrials Momentum ETF (PRN)?

Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the Invesco Dorsey Wright Industrials Momentum ETF (PRN) is a passively managed exchange traded fund launched on October 12, 2006.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $358.2 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. PRN seeks to match the performance of the DWA Industrials Technical Leaders Index before fees and expenses.The Dorsey Wright??Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.CostsSince 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 this ETF are 0.6%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.35%.Sector Exposure and Top HoldingsETFs offer a 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.This ETF has heaviest allocation in the Industrials sector -- about 94.8% of the portfolio.Looking at individual holdings, Heico Corp (HEI) accounts for about 4.95% of total assets, followed by Rocket Lab Corp (RKLB) and Comfort Systems Usa Inc (FIX).The top 10 holdings account for about 42.37% of total assets under management.Performance and RiskThe ETF has gained about 5.97% and it's up approximately 22.41% so far this year and in the past one year (as of 08/07/2025), respectively. PRN has traded between $122.83 and $177.75 during this last 52-week period.The ETF has a beta of 1.22 and standard deviation of 22.9% for the trailing three-year period, making it a medium risk choice in the space. With about 43 holdings, it has more concentrated exposure than peers.AlternativesInvesco Dorsey Wright Industrials Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PRN is a good option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $6.01 billion in assets, Industrial Select Sector SPDR ETF has $23.19 billion. VIS has an expense ratio of 0.09%, and XLI charges 0.08%.Bottom 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 Dorsey Wright Industrials Momentum ETF (PRN): 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