Rene Reyna of Invesco describes a tech-focused index ETF that is completely redone each quarter During another good year for the stock market, a trend has been reversed. The S&P 500’s forward price-to-earnings ratio has declined to 19.5 from 22.2 at the end of 2025, according to FactSet, as its weighted rolling 12-month consensus earnings-per-share estimate has risen 29.4%, more than double the index’s gains. And this brings us to the call of the day from Rene Reyna, head of thematic and specialty product strategy for Invesco’s exchange-traded fund and indexed strategies.
Invesco manages about 250 ETFs, most of which track specialized stock indexes. Reyna pointed to the Invesco Large Cap Growth ETF as a way to have more concentrated exposure to the largest companies involved with the AI build-out, with that exposure shifting as the AI story unfolds. PWB has returned 112.7% over the past three years with dividends reinvested, while the S&P 500 has returned 89.8%, according to FactSet.
So far this year, PWB has returned 27.4%, while the S&P 500 has returned 14.4%. Why humanoid robots are so hard to mass-produce Play video: Why humanoid robots are so hard to mass-produce Reyna told MarketWatch that the PWB portfolio was 38% to 39% weighted to technology stocks, while the S&P 500 was about 29% weighted to tech. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it.
I would like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time. The PWB portfolio is fully reconstituted during the last month of each calendar quarter as it tracks the Dynamic Large Cap Growth Intellidex Index, which is managed by Intercontinental Exchange, the owner of the New York Stock Exchange.
The index provider begins with the largest 2,000 stocks listed publicly in the U.S. by market capitalization and then scores them using 47 factors within five broad categories: price momentum, earnings momentum, quality (including return on equity and free cash flow margin), management action (including capital spending, stock buybacks and dividend payments), and value (such as revenue to enterprise value, price/book value and cash to equity). At the end of this quarterly process, the 50 stocks scoring highest are weighted for the index and the PWB portfolio so that the 15 largest by market cap have a combined 50% weighting, with each weighted at 3.33%. Then the remaining 35 stocks are weighted equally.
The top three holdings of PWB are now Intel , Advanced Micro Devices and Meta Platforms , which make up 12.8% of the portfolio — and all of which rallied on Monday. The top three stocks in the State Street SPDR S&P 500 ETF Trust are Nvidia , Apple and Microsoft , which make up a combined 21.2% of that portfolio. So SPY is more concentrated at the top, while the PWB portfolio is more concentrated to tech.
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