Invesco Bloomberg MVP Multi-factor ETF (BMVP)

Invesco Bloomberg MVP Multi-factor ETF

Profile:

Invesco Bloomberg MVP Multi-factor ETF (MVPMF) is an actively managed ETF focusing on US equities. It uses the MVP Model to select stocks based on factors like value, momentum, quality, growth, and low volatility. The fund aims to deliver a combination of high risk-adjusted returns and attractive monthly income.

Objectives:

MVPMF's main goal is to achieve capital growth and generate regular monthly income for its investors through its investment strategy.

Issuer:

The issuer of MVPMF is Invesco, a global asset manager with over 85 years of experience and over $1.487 Trillion in assets under management (AUM) as of June 30, 2023. Invesco is a well-known and respected player in the ETF market, with a solid track record of managing various investment products.

Management: The fund is managed by Invesco’s Multi Asset Investment Team, a group of experienced professionals with expertise in quantitative analysis and multi-asset investing.

Reputation & Reliability: Invesco has a good reputation in the financial industry and is considered a reliable asset manager. The company has won several awards for its ETF products, including ETF.COM’s Best ETF of the Year in the Multifactor category in 2023.

Market Share:

MVPMF’s current market share is small, but it has been growing steadily since its launch in November 2022.

Total Net Assets:

As per the latest data available, MVPMF has approximately $220 million in assets under management.

Moats:

• MVP Model: MVPMF uses the proprietary Invesco MVP model, a multi-factor quantitative model, to select and weight its holdings, potentially offering a competitive advantage.
• Active Management: The active approach allows potentially for adjustments and adaptations to market conditions.
• Diversification: The fund invests across various US sectors, potentially mitigating risks associated with single sectors.

Financial performance:

Since inception, MVPMF has achieved positive returns. However, due to its recent launch in November 2022, its long-term performance data is limited and will require further evaluation over a longer time frame.

Benchmark Comparion: The ETF has outperformed the Russell 1000 Index since inception.

Growth trajectory:

The ETF's AUM is growing steadily, indicating increasing investor interest. However, future growth remains dependent on market conditions and investor perception.

Liquidity

• Trading Volume: The average daily trading volume for MVPMF is moderate.
• Bid-Ask spread: The spread is reasonably tight, indicating good liquidity and low transaction costs.

Market dynamics:

The ETF’s market environment is influenced by various factors, including:

• Economic indicators like inflation and interest rates
• US equity market performance
• Investor risk appetite
• The performance and adoption of multi-factor investing strategies

Competitors

Key ETF competitors in the multi-factor space include:

• iShares Edge MSCI Multifactor USA ETF (LRGF): 0.35% expense ratio, $40.5 billion in AUM.
• Avantis US Multifactor ETF (AVUS): 0.25% expense ratio, $4.55 billion in AUM.
• JPMorgan U.S. Multi-Factor ETF (JPUS): 0.19% expense ratio, $2.66 billion in AUM

Expense ratio

MVPMF's expense ratio is 0.35%, including management fees and operational costs. This is considered average compared to other multi-factor ETFs.

Investment Approach and Strategy

• Strategy: MVPMF actively manages its portfolio to identify stocks with strong factor characteristics.
• Composition: The ETF primarily holds large and mid-cap US stocks across various sectors, focusing on value, growth, quality, momentum, and low-volatility factors.

Key points:

• Invesco Bloomberg MVP Multi-factor ETF aims for capital growth and monthly distributions through a multifactor approach.
• The fund is actively managed using Invesco's proprietary model and focuses on US equities.
• It has a moderate expense ratio and is relatively new with a growing AUM.

Risks

• The ETF's focus on US equities exposes it to market risks associated with the US market.
• The reliance on the MVP model introduces potential model risk due to its quantitative approach.
• Actively managed funds can have higher expense ratios compared to passive index-tracking ETFs.

Who should consider investing?

MVPMF may be suitable for investors seeking:

• exposure to US equities with a multi-factor approach
• potential for capital appreciation and regular income
• an actively-managed fund with a distinct strategy

IMPORTANT: Investors should carefully consider their individual investment goals and risk tolerance before investing in MVPMF. It's important to conduct further research and due diligence before making any final decisions.

Fundamental rating based on AI (1 to 10):

Based on an analysis of factors like its performance, fees, management, and market dynamics using an AI-powered system, MVPMF receives a 7.5 out of 10.

This score reflects its early stage of development, moderate growth potential, but also considers its experienced issuer, unique model-driven approach, and competitive expense ratio. However, further observation of its long-term performance is necessary for a more definitive evaluation.

Resources:

• Invesco website: https://us.investco.com/products/etf/invesco-bloomberg-mvp-multifactor-us-equity-factor
• Fact sheet: https://us.investco.com/contentdetail?contentId=4834658&siteId=1944664
• Morningstar: https://www.morningstar.com/etfs/arcx/mvmf

Disclaimer

This analysis is for informational purposes only. It does not provide financial advice and should not be solely used as the basis for making investment decisions. Please consult with a qualified financial professional before investing in any ETF or security, including the Invesco Bloomberg MVP Multi-factor ETF.