The Invesco Dynamic Software ETF (PSJ) was launched on 06/23/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.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.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: 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.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexThe fund is managed by Invesco. PSJ has been able to amass assets over $300.74 million, making it one of the average sized ETFs in the Technology ETFs. This particular fund seeks to match the performance of the Dynamic Software Intellidex Index before fees and expenses.The Dynamic Software Intellidex Index is comprised of stocks of software 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 factors.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.56% for this ETF, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 7.25%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector - about 51.80% of the portfolio. Telecom and Healthcare round out the top three.Taking into account individual holdings, Hubspot Inc (HUBS) accounts for about 6.16% of the fund's total assets, followed by Intuit Inc (INTU) and Microsoft Corp (MSFT).PSJ's top 10 holdings account for about 49.97% of its total assets under management.Performance and RiskThe ETF has lost about -13.46% so far this year and is down about -28.01% in the last one year (as of 01/20/2022). In the past 52-week period, it has traded between $109.28 and $185.30.The fund has a beta of 0.97 and standard deviation of 27.98% for the trailing three-year period, which makes PSJ a high risk choice in this particular space. With about 30 holdings, it has more concentrated exposure than peers.AlternativesInvesco Dynamic Software ETF is a reasonable option for investors seeking to outperform the Technology ETFs segment of the market. However, there are other ETFs in the space which investors could consider.SPDR S&P Software & Services ETF (XSW) tracks S&P Software & Services Select Industry Index and the iShares Expanded TechSoftware Sector ETF (IGV) tracks S&P North American Technology-Software Index. SPDR S&P Software & Services ETF has $340.54 million in assets, iShares Expanded TechSoftware Sector ETF has $5.27 billion. XSW has an expense ratio of 0.35% and IGV charges 0.43%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology 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. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. 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