The Invesco Building & Construction ETF (PKB) made its debut on 10/26/2005, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.
Launched on October 26, 2005, the Invesco Building & Construction ETF (PKB) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Engineering and Construction segment of the equity market.
PKB which leverages proprietary screeners to pick 30 building and construction stocks from the US is currently outperforming the key US indices by 10% on a YTD basis. The Intellidex methodology gauges price, earnings, quality, management actions, and value before arriving at a consummate score that is used to build the portfolio. PKB faces some structural drawbacks such as high churn, wide bid-asks, a concerning volatility profile, and an unappealing income profile.
| ARCA Exchange | US Country |
The company operates a specialized investment fund that focuses on the U.S. building and construction sector. It aims to align its investments closely with the performance of an underlying intellidex, which is composed exclusively of common stocks from leading U.S. companies involved in construction and related engineering services. This fund is committed to investing at least 90% of its total assets in securities that are part of the said intellidex, ensuring a high level of fidelity to its investment mandate. The sectors covered by the underlying intellidex span across a wide array of construction-related activities, including but not limited to the construction and remodeling of residential properties, commercial, or industrial buildings. Notably, the fund is classified as non-diversified, which implies a concentrated investment strategy focusing on a specific sector or type of securities.
This core service involves the allocation of the fund's resources into stocks of U.S. companies that operate within the building and construction sector. By mirroring the composition of the underlying intellidex, the fund primarily targets companies that are prominent players in the construction industry. These companies may be engaged in a variety of construction-related activities, including the construction, renovation, and remodeling of residential, commercial, or industrial properties.
The fund offers investors a targeted exposure to the construction and engineering sector, encompassing a broad spectrum of services. This includes companies specializing in the provision of construction services, as well as those offering engineering, architectural, and other related services. The focus on this sector leverages the growth potential and opportunities within the U.S. construction industry, providing an investment avenue for those seeking exposure to this market segment.