Invesco Bloomberg Pricing Power ETF

Invesco Bloomberg Pricing Power ETF (POWA) holds 50 US large- and mid-sized companies picked by the Bloomberg Pricing Power Index because their gross profit margins stayed steady over five years. Each stock gets an equal weight. What sets it apart is its screen for stable margins and lower debt, rather than weighting by company size. Its 0.40% expense ratio is close to the 0.41% average for similar funds.

• Over the year to Oct 27, 2026, POWA returned +0.2%, 7th of 7 among similar funds.
• Its worst full calendar year was 2025 (+11.7%); its best was 2024 (+13.2%).
• The deepest fall in its price history was 15% (Dec 4, 2024 to Apr 8, 2025), recovered by Jul 1, 2025.

As of Aug 31, 2026, the fund held 50 securities; the ten largest made up 23.94% of assets, and 2.78% sat in cash and money-market holdings.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $6.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.87%, +2.15%, -0.42%.

Invesco's POWA is an index fund tracking the Bloomberg Pricing Power Index, compiled by Bloomberg Index Services Limited. It generally keeps at least 80% of its total assets in the index's stocks. The index seeks U.S. large- and mid-sized companies whose gross profit margins (the share of sales left after direct costs) have held steady. It treats that as a sign of pricing power: the ability to raise prices without losing customers.

To qualify, a stock must be in Bloomberg's U.S. large- or mid-cap universe and average at least $10 million in daily trading over 90 days. Four screens follow, in order: positive net profit margins in each of the past five years; a spot among its sector's 50 largest companies; staying out of its sector's most indebted 10%, measured against market value; and finally, ranking among the 50 stocks whose gross margins varied least over five years.

The 50 stocks are equally weighted, so Microsoft starts with the same weight as Tractor Supply. As of August 31, 2026, Roper Technologies and Mettler-Toledo were among the largest positions at about 2.5% each; the top 10 totaled about 24%. The fund generally owns every index stock directly. Portfolio turnover was 91%, meaning heavy trading, with costs on top of the 0.40% expense ratio.

• POWA charges 0.4% a year, versus an average of 0.41% for the similar funds below (4th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).

It is a 50-stock, equal-weighted tilt toward one factor (stable margins), so it fits best alongside a broad core fund rather than replacing one.

POWA could add a quality tilt next to a broad stock fund, but it still falls with the market. It dropped 19.8% in the first quarter of 2020, then gained 15.19% the next quarter and ended 2020 up 7.46%. It lost 7.59% in 2022, its weakest calendar year from 2015 through 2024. In price data starting August 2023, its deepest drop was 15%, from December 4, 2024 to April 8, 2025. It recovered by July 1, 2025, in about three months. Figures for 2008 aren't available. Someone withdrawing money during a drop like early 2020 would lock in losses.

Income is small: the trailing yield was 0.93% as of October 27, 2026, paid once a year. Under the SEC's standard example, $10,000 invested would cost $41 in the first year. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).