Should Invesco Large Cap Growth ETF (PWB) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco Large Cap Growth ETF (PWB) is a passively managed exchange traded fund launched on March 3, 2005.

The fund is sponsored by Invesco. It has amassed assets over $1.56 billion, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.55%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 48.8% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Micron Technology Inc (MU) accounts for about 5.17% of total assets, followed by Walmart Inc (WMT) and Costco Wholesale Corp (COST).

The top 10 holdings account for about 34.2% of total assets under management.

Performance and Risk

PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.

The ETF has added about 7.2% so far this year and it's up approximately 30.33% in the last one year (as of 02/27/2026). In the past 52-week period, it has traded between $86.24 and $137.79.

The ETF has a beta of 1.16 and standard deviation of 18.13% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco Large Cap Growth ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PWB is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $196.69 billion in assets, Invesco QQQ has $399.83 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To 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.

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Invesco Large Cap Growth ETF (PWB): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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