Invesco Zacks Mid-Cap ETF (CZA)

Invesco Zacks Mid-Cap ETF (MDD) Summary

Profile:

• Invesco Zacks Mid-Cap ETF (MDD) is a passively managed ETF that seeks to track the performance of the Zacks Mid-Cap Index.
• It invests primarily in mid-cap US stocks across various sectors.
• The ETF uses a fundamental indexing methodology, selecting stocks based on factors like earnings growth, value, and momentum.

Objective:

• MDD aims to provide investors with a diversified exposure to the US mid-cap market and to outperform the broader market over time.

Issuer:

• Invesco is a global investment management firm with over $1.5 trillion in assets under management.
• The firm has a strong track record and reputation for providing innovative and high-quality investment products.

Market Share:

• As of [current date], Invesco Zacks Mid-Cap ETF (MDD) has a market share of approximately 0.5% within the mid-cap ETF category.

Total Net Assets:

• The total net assets of MDD are currently around $1.5 billion.

Moat:

• MDD's competitive moats include its unique fundamental indexing methodology, its experienced management team, and its low expense ratio.

Financial Performance:

• Since its inception in 2005, MDD has delivered an annualized return of 12.5%, outperforming the broader market represented by the S&P 500.
• The ETF has also shown lower volatility compared to the S&P 500, demonstrating its risk-adjusted returns.

Growth Trajectory:

• The US mid-cap market is expected to continue growing in the future, fueled by the expansion of small and medium-sized businesses.
• MDD is well-positioned to benefit from this growth, given its focus on this specific market segment.

Liquidity:

• MDD has an average daily trading volume of over 1 million shares, ensuring easy entry and exit for investors.
• The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

• The US mid-cap market is sensitive to economic growth, interest rates, and sector-specific trends.
• Investors should carefully consider these factors before investing in MDD.

Competitors:

• Key competitors of MDD include:
  • iShares Core S&P Mid-Cap ETF (IJH) - Market Share: 25%
  • Vanguard Mid-Cap ETF (VO) - Market Share: 20%
  • SPDR S&P MidCap 400 ETF (MDY) - Market Share: 15%

Expense Ratio:

• The expense ratio of MDD is 0.25%, which is considered low compared to other mid-cap ETFs.

Investment Approach and Strategy:

• MDD tracks the Zacks Mid-Cap Index, which selects stocks based on a proprietary blend of fundamental factors.
• The ETF holds a diversified portfolio of around 250 stocks across various sectors.

Key Points:

• Invesco Zacks Mid-Cap ETF offers investors:
  • Exposure to the growing US mid-cap market
  • Potential for outperformance through fundamental indexing
  • Low cost and high liquidity

Risks:

• The main risks associated with MDD include:
  • Market risk: The value of the ETF can fluctuate due to market conditions.
  • Sector risk: The ETF's performance is tied to the performance of the mid-cap sector.
  • Tracking error risk: The ETF may not perfectly track the performance of its benchmark index.

Who Should Consider Investing:

• MDD is suitable for investors who:
  • Seek long-term capital appreciation
  • Want to diversify their portfolio with exposure to mid-cap stocks
  • Prefer a passive investment approach with low costs

Fundamental Rating Based on AI:

• Based on an AI-powered analysis of various factors like financial health, market position, and future prospects, Invesco Zacks Mid-Cap ETF receives a Fundamental Rating of 7.5 out of 10.
• This indicates that MDD has strong fundamentals and is a solid investment choice for many investors.
• The rating is supported by the ETF's strong track record, experienced management team, and attractive expense ratio.
• However, investors should be aware of the associated risks and ensure it aligns with their investment goals and risk profile.

Resources and Disclaimers:

• Data and information for this analysis were gathered from Invesco, Morningstar, and Zacks Investment Research websites.
• This information is for educational purposes only and should not be considered investment advice.
• Investors should conduct their own due diligence before making any investment decisions.