If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Invesco Dorsey Wright Healthcare Momentum ETF (PTH), a passively managed exchange traded fund launched on October 12, 2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $202.86 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PTH seeks to match the performance of the DWA Healthcare Technical Leaders Index before fees and expenses.
The Dorsey Wright??Healthcare 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.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 2.61%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector -- about 100% of the portfolio.
Looking at individual holdings, Roivant Sciences Ltd (ROIV) accounts for about 4.9% of total assets, followed by Praxis Precision Medicines Inc (PRAX) and Tango Therapeutics Inc (TNGX).The top 10 holdings account for about 32.84% of total assets under management.
Performance and Risk
So far this year, PTH has gained about 17.84%, and is up roughly 57.76% in the last one year (as of 07/27/2026). During this past 52-week period, the fund has traded between $37.132 and $61.67.
The ETF has a beta of 0.81 and standard deviation of 25.22% for the trailing three-year period, making it a high risk choice in the space. With about 60 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dorsey Wright Healthcare 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, PTH is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Health Care Index Fund ETF Shares (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the State Street Health Care Select Sector SPDR ETF ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care Index Fund ETF Shares has $18.16 billion in assets, State Street Health Care Select Sector SPDR ETF ETF has $42.54 billion. VHT has an expense ratio of 0.09%, and XLV charges 0.08%.
Bottom Line
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 Dorsey Wright Healthcare Momentum ETF (PTH): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).