Invesco BuyBack Achievers ETF (PKW): A Deep Dive into Performance and Strategy

## Invesco BuyBack Achievers ETF (PKW): A Deep Dive into Performance and Strategy

Invesco BuyBack Achievers ETF (PKW) is a smart beta ETF that invests in companies with a history of share buybacks. The fund has outperformed the broad market over the long term and offers investors a unique way to play the share buyback trend.

### Performance

Since its inception in 2006, PKW has outperformed the Russell 3000 index by over 30% in total return. The fund has also outperformed other buyback-focused ETFs over the last 12 months.

### Strategy

PKW tracks the NASDAQ US BuyBack Achievers Index, which is comprised of United States securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. Constituents must meet a liquidity threshold, and they are weighted based on a modified market capitalization methodology, with a limit of 5% by issuer.

### Holdings

PKW is well-diversified across sectors and holdings. The fund’s top 10 holdings include T-Mobile US, Inc., Johnson & Johnson, Booking Holdings, Inc., and Comcast Corp.

### Comparison to Other Buyback-Focused ETFs

PKW is one of several buyback-focused ETFs on the market. Other popular funds include iShares Core Dividend ETF (DIVB), Cambria Shareholder Yield ETF (SYLD), and First Trust Bloomberg Shareholder Yield ETF (SHRY).

PKW has outperformed DIVB and SHRY over the last 12 months, but has lagged Cambria’s fund since November 2017.

### Takeaway

Invesco BuyBack Achievers ETF (PKW) is a solid choice for investors looking for exposure to the share buyback trend. The fund has a proven track record of outperformance and offers investors a well-diversified portfolio of companies with a history of returning cash to shareholders.

Disclaimer: I am not a financial advisor and this is not financial advice. Please do your own research before investing in any security.