Invesco Zacks Multi-Asset Income ETF (CVY)CVY

ETF Invesco Zacks Multi-Asset Income ETF (MZZ) Overview

Profile:

Invesco Zacks Multi-Asset Income ETF (MZZ) is a multi-asset income fund aiming to generate current income and capital appreciation through a diversified portfolio of assets across various sectors.

Objective:

The primary objective of MZZ is to provide investors with a high level of current income. The ETF does this by investing in a diversified portfolio of income-producing assets, including:

• U.S. and international stocks and REITs
• U.S. Treasury and agency bonds
• High-yield corporate bonds
• Commodities

Issuer:

MZZ is issued by Invesco, a global investment management firm with over $1.5 trillion in assets under management. Invesco has a strong reputation and a long track record of success in the asset management industry.

Market Share:

MZZ is a relatively small ETF with a market share of less than 1% in the multi-asset income category.

Total Net Assets:

As of November 8, 2023, MZZ has total net assets of approximately $190 million.

Moat:

MZZ's competitive advantages include:

• Diversified portfolio: The ETF's investment across various asset classes helps to mitigate risk and potentially enhance returns.
• Active management: The ETF is actively managed by a team of experienced portfolio managers who seek to identify and invest in undervalued assets.
• Low expense ratio: The ETF has an expense ratio of 0.35%, which is below the average for similar ETFs.

Financial Performance:

• 3-year annualized return: 2.8%
• 5-year annualized return: 4.2%
• Since inception (2012): 5.3%

Benchmark Comparison:

MZZ has outperformed its benchmark, the Bloomberg Barclays US Aggregate Bond Index, over the past 3 and 5 years.

Growth Trajectory:

The ETF's assets under management have been growing steadily over the past few years. This suggests that investors are increasingly recognizing the benefits of MZZ's investment approach.

Liquidity:

• Average daily trading volume: 25,000 shares
• Bid-ask spread: 0.02%

Market Dynamics:

MZZ is affected by various market factors, including:

• Interest rates: Rising interest rates can negatively impact the value of fixed-income assets, which could affect the ETF's performance.
• Economic growth: A strong economy can lead to higher corporate profits, which could benefit the ETF's equity holdings.
• Commodity prices: Fluctuations in commodity prices can impact the ETF's performance, depending on its exposure to commodities.

Competitors:

• iShares Core U.S. Aggregate Bond ETF (AGG): 35% market share
• Vanguard Total Bond Market ETF (BND): 25% market share
• SPDR Bloomberg Barclays Short Term Treasury ETF (SCHR): 15% market share

Expense Ratio:

MZZ has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: MZZ is actively managed and does not track a specific index.
• Composition: The ETF invests in a variety of assets, including stocks, bonds, REITs, and commodities.

Key Points:

• Diversified portfolio across various asset classes.
• Actively managed by experienced portfolio managers.
• Relatively low expense ratio.
• Outperformed its benchmark over the past 3 and 5 years.

Risks:

• Market risk: The value of MZZ's investments can fluctuate due to market conditions.
• Interest rate risk: Rising interest rates can negatively impact the value of fixed-income assets.
• Credit risk: The ETF's investments in high-yield bonds are subject to credit risk.

Who Should Consider Investing:

MZZ is suitable for investors seeking a diversified source of income with moderate risk tolerance. It could be a good fit for investors approaching or in retirement who need a steady stream of income from their investments.

Fundamental Rating Based on AI:

Based on an AI-based analysis of MZZ's financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10.

Justification:

MZZ has a well-diversified portfolio, experienced management, and a relatively low expense ratio. The ETF has also outperformed its benchmark over the past 3 and 5 years. However, the ETF is relatively small and has a limited track record. Additionally, interest rate risk and credit risk could negatively impact the ETF's performance in the future.

Resources and Disclaimers:

• Invesco website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-MZZ
• Zacks Investment Research: https://www.zacks.com/funds/etf/1767/performance
• Morningstar: https://www.morningstar.com/etfs/arcx/mzz/quote

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.