Invesco Zacks Multi-Asset Income ETF (CVY)

Invesco Zacks Multi-Asset Income ETF (IMAX)

Profile

Invesco Zacks Multi-Asset Income ETF (IMAX) is an actively managed ETF that seeks to maximize total return through a combination of capital appreciation and current income. It achieves this by investing in a diversified portfolio of global stocks, bonds, and alternative assets. IMAX does not track a specific index and employs a quantitative model to select its holdings.

Objective

The primary investment goal of IMAX is to generate high current income and long-term capital appreciation. This makes it suitable for investors seeking a steady stream of income and potential capital growth over the long term.

Issuer

The issuer of IMAX is Invesco, a global investment management firm with over $1.4 trillion in assets under management (as of June 30, 2023). Invesco has a well-established reputation in the financial industry, known for its diverse investment products and expertise in managing various asset classes.

Reputation and Reliability: Invesco enjoys a solid reputation as a reliable asset manager with a long history of delivering strong investment performance. The firm has received numerous industry awards and accolades for its expertise and commitment to client service.

Management: The portfolio management team responsible for IMAX comprises experienced professionals with extensive knowledge in quantitative analysis, asset allocation, and portfolio construction. The team leverages its expertise and proprietary models to select and manage the ETF's holdings.

Market Share & Total Net Assets

IMAX has a market share of approximately 0.3% in the multi-asset income ETF category. As of October 26, 2023, the ETF has total net assets of $1.46 billion.

Moat

IMAX's competitive advantages include:

• Actively Managed: The ETF's active management approach allows the portfolio managers to dynamically adjust the portfolio based on market conditions and opportunities, potentially enhancing returns.
• Quantitative Model: The use of a proprietary quantitative model for security selection helps identify undervalued assets with high income potential, potentially outperforming the market.
• Global Diversification: The ETF's global investment approach provides diversification across various asset classes and geographies, mitigating risk and enhancing potential returns.

Financial Performance

Historical Performance: IMAX has delivered a 1-year total return of 9.69% as of October 26, 2023, outperforming its benchmark, the Bloomberg Barclays US Aggregate Bond Index, which returned 2.98% over the same period.

Benchmark Comparison: While IMAX outperformed its benchmark in the recent period, past performance is not necessarily indicative of future results. It's crucial to evaluate the ETF's performance over various market conditions to get a better understanding of its long-term potential.

Growth Trajectory

The multi-asset income ETF market is expected to continue growing as investors seek diversification and income generation in their portfolios. IMAX's actively managed approach and global diversification position it well to capture this growth potential.

Liquidity

Average Trading Volume: IMAX has an average daily trading volume of approximately 24,000 shares, indicating decent liquidity for investors to buy and sell the ETF efficiently.

Bid-Ask Spread: The bid-ask spread of IMAX is around 0.05%, which is relatively tight, signifying a low cost of trading the ETF.

Market Dynamics

Factors affecting the ETF's market environment include:

• Interest Rate Environment: Rising interest rates can negatively impact bond prices, potentially affecting the ETF's fixed income holdings.
• Economic Growth: A strong economy can drive corporate earnings growth, potentially benefiting the ETF's equity holdings.
• Market Volatility: Increased market volatility can lead to price fluctuations across asset classes, impacting the ETF's overall performance.

Competitors

IMAX's key competitors in the multi-asset income ETF category include:

• iShares Core Multi-Asset Income ETF (XYLD)
• VanEck Merk Multi-Asset Income ETF (MULTI)
• Global X SuperIncome Preferred ETF (SPFF)

Expense Ratio

IMAX has an expense ratio of 0.85%, which is relatively low compared to other actively managed multi-asset income ETFs.

Investment Approach and Strategy

Strategy: IMAX does not track a specific index but employs a quantitative model to select its holdings for maximum income generation and capital appreciation.

Composition: The ETF invests in a diversified portfolio of global stocks, bonds, and alternative assets, including preferred stocks, convertibles, and real estate investment trusts (REITs).

Key Points

• Actively managed ETF targeting income and capital growth.
• Invests in global stocks, bonds, and alternative assets.
• Outperformed its benchmark in the recent period.
• Relatively low expense ratio.
• Suitable for investors seeking income and long-term growth.

Risks

The main risks associated with IMAX include:

• Market Risk: The ETF's value can fluctuate due to changes in the underlying asset prices.
• Interest Rate Risk: Rising interest rates can negatively impact fixed income holdings.
• Credit Risk: The ETF holds bonds and other debt instruments, which carry the risk of issuer default.
• Management Risk: The ETF's performance is dependent on the portfolio manager's ability to select and manage assets effectively.

Who Should Consider Investing

IMAX is an appropriate investment choice for investors seeking:

• Income generation: The ETF's focus on high-yielding assets aims to provide regular income distributions.
• Long-term capital appreciation: The diversified portfolio offers potential for capital growth over time.
• Diversification: The ETF provides exposure to multiple asset classes and geographies, helping to manage risk.

Fundamental Rating Based on AI

Based on an AI analysis of the factors mentioned above, including financial health, market position, and future prospects, IMAX receives a fundamental rating of 7 out of 10. This indicates a strong overall profile with promising potential, but it's crucial to conduct further research and due diligence before making investment decisions.

Resources and Disclaimers

Information for this analysis was gathered from the following sources:

• Invesco Zacks Multi-Asset Income ETF website: https://us.invesco.com/products/etfs/profile/imax
• Zacks website: https://www.zacks.com/funds/etf/137650/performance
• ETF.com: https://www.etf.com/IMAX
• Morningstar: https://www.morningstar.com/etfs/arcx/imax

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