The Invesco Building & Construction ETF (PKB) offers exposure to the construction sector, but is it the right choice for investors today?

This ETF is managed by Invesco and has around $419.78 million in assets. It tracks the Dynamic Building & Construction Intellidex Index, which includes U.S. companies in the building and construction space. The index looks at various factors like growth potential and stock valuation to pick its stocks.
When it comes to costs, PKB has an annual operating expense of 0.57%, which is pretty standard for this type of fund. It also offers a modest dividend yield of 0.22%.
In terms of sector exposure, PKB is heavily weighted in the Industrials sector, making up about 45.90% of its portfolio. The top three sectors also include Materials and Consumer Discretionary. Notably, Trane Technologies is one of its biggest holdings, accounting for about 5.38% of total assets.
So far this year, PKB has returned around 2.42% and has seen a 25.12% increase over the past year. However, it’s worth noting that it has a beta of 1.39, indicating it’s a higher-risk option compared to some peers.
If you’re considering alternatives, the SPDR S&P Homebuilders ETF (XHB) is another option, with a lower expense ratio of 0.35%. For those looking for less risk, traditional market cap-weighted ETFs might be a better fit.
In summary, PKB could be a solid choice for those wanting to invest in the construction sector, but it’s always good to weigh your options and see what aligns best with your investment goals.