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

Group 1: Core Insights - The Invesco Building & Construction ETF (PKB) debuted on October 26, 2005, providing broad exposure to the Industrials ETFs category [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, which are convenient for replicating market returns [2] - Smart beta strategies, which focus on non-cap weighted indexes, aim to select stocks with better risk-return performance based on fundamental characteristics [3][4] Group 2: Fund Details - Managed by Invesco, PKB has amassed over $231.26 million in assets, making it an average-sized ETF in the Industrials sector [5] - The fund seeks to match the performance of the Dynamic Building & Construction Intellidex Index, which evaluates U.S. building and construction companies based on various investment merit criteria [6] - The ETF has an annual operating expense ratio of 0.57% and a 12-month trailing dividend yield of 0.20% [7] Group 3: Sector Exposure and Holdings - The fund has a heavy allocation of 59% to the Industrials sector, with Materials and Consumer Discretionary as the next largest sectors [8] - Emcor Group Inc (EME) accounts for approximately 5.47% of the fund's total assets, with the top 10 holdings representing about 45.95% of total assets under management [9] Group 4: Performance Metrics - PKB has increased by about 8.8% year-to-date and 13.79% over the past year, with a trading range between $62.05 and $88.37 in the last 52 weeks [11] - The fund has a beta of 1.25 and a standard deviation of 25.52% over the trailing three-year period, indicating a higher risk profile [11] Group 5: Alternatives - While PKB is a reasonable option for outperforming the Industrials ETFs segment, alternatives like the SPDR S&P Homebuilders ETF (XHB) exist, which has $1.42 billion in assets and a lower expense ratio of 0.35% [12]