Is Invesco High Yield Equity Dividend Achievers ETF (PEY) a Strong ETF Right Now?

A smart beta exchange traded fund, the Invesco High Yield Equity Dividend Achievers ETF (PEY) debuted on 12/09/2004, and offers broad exposure to the Style Box - All Cap Value category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $1.11 billion, which makes it one of the larger ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ US Dividend Achievers 50 Index.The NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.Cost & Other ExpensesSince 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 0.54%, making it on par with most peer products in the space.PEY's 12-month trailing dividend yield is 4.29%.Sector Exposure and Top HoldingsEven 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.PEY's heaviest allocation is in the Financials sector, which is about 23% of the portfolio. Its Industrials and Consumer Staples round out the top three.When you look at individual holdings, Lyondellbasell Industries Nv (LYB) accounts for about 4.96% of the fund's total assets, followed by Insperity Inc (NSP) and Robert Half Inc (RHI).PEY's top 10 holdings account for about 32.25% of its total assets under management.Performance and RiskThe ETF has added about 18.91% and was up about 16.68% so far this year and in the past one year (as of 07/03/2026), respectively. PEY has traded between $19.60 and $23.74 during this last 52-week period. The ETF has a beta of 0.66 and standard deviation of 15.98% 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 .AlternativesInvesco High Yield Equity Dividend Achievers ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $9.87 billion in assets, iShares Core S&P U.S. Value ETF has $26.7 billion. FDVV has an expense ratio of 0.15% and IUSV changes 0.04%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap ValueBottom 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 >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks