A smart beta exchange traded fund, the PowerShares Dynamic Building & Construction Portfolio (PKB) debuted on 10/26/2005, and offers broad exposure to the Industrials ETFs category of the U.S. equity market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexThe fund is sponsored by Invesco Powershares. It has amassed assets over $289.70 M, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, PKB seeks to match the performance of the Dynamic Building & Construction Intellidex Index.The index is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factorsn.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Annual operating expenses for PKB are 0.63%, which makes it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.19%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 43.50% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector; Industrials and Materials round out the top three.Taking into account individual holdings, Pultegroup Inc (PHM) accounts for about 5.52% of the fund's total assets, followed by Tractor Supply Co (TSCO) and Dr Horton Inc (DHI).The top 10 holdings account for about 45.75% of total assets under management.Performance and RiskSo far this year, the ETF has lost about -10.18%, and was up about 7.33% in the last one year (as of 05/22/2018). PKB has traded between $28.31 and $36.11 in the past 52-week period.The ETF has a beta of 1.22 and standard deviation of 17.95% for the trailing three-year period, making it a high choice in the space. With about 30 holdings, it has more concentrated exposure than peers.AlternativesPowerShares Dynamic Building & Construction Portfolio is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.SPDR S&P Homebuilders ETF (XHB) tracks S&P Homebuilders Select Industry Index and the iShares U.S. Home Construction ETF (ITB) tracks Dow Jones U.S. Select Home Construction Index. SPDR S&P Homebuilders ETF has $890.20 M in assets, iShares U.S. Home Construction ETF has $1.57 B. XHB has an expense ratio of 0.35% and ITB charges 0.44%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs.Bottom LineTo 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.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report SPDR-SP HOMEBLD (XHB): ETF Research Reports ISHARS-US HO CO (ITB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports Tractor Supply Company (TSCO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research