Invesco DWA SmallCap Momentum ETF (DWAS)

Overview

The Invesco DWA SmallCap Momentum ETF (DWAS) seeks to track the investment results of the Dorsey Wright SmallCap Technical Leaders Index, which is composed of approximately 200 US small-cap stocks with the highest relative strength scores. The fund focuses on identifying and investing in stocks exhibiting positive momentum characteristics.

Reputation and Reliability

Invesco is a well-established and reputable global investment management firm with a long track record of providing diverse ETF offerings.

Management Expertise

Invesco's management team possesses extensive experience in quantitative investment strategies and ETF management.

Goal

The investment objective of the Invesco DWA SmallCap Momentum ETF is to track the investment results of the Dorsey Wright SmallCap Technical Leaders Index.

Investment Approach and Strategy

Strategy: DWAS aims to track the performance of the Dorsey Wright SmallCap Technical Leaders Index.

Composition The ETF holds a portfolio of approximately 200 small-cap US stocks selected based on their relative strength scores. It primarily invests in equities.

Market Share: DWAS holds a moderate market share within the small-cap momentum ETF segment.

Total Net Assets (AUM): 279000000

Key Competitors

• SPDR S&P 600 Small Cap Value ETF (SLYV)
• Vanguard Russell 2000 Value ETF (VTWV)
• Avantis U.S. Small Cap Value ETF (AVUV)

Competitive Landscape

The small-cap ETF market is highly competitive, with numerous funds tracking various indices and employing different investment strategies. DWAS differentiates itself through its unique momentum-based approach. A key advantage of DWAS is its focus on relative strength, potentially leading to outperformance during periods of strong market momentum. However, it may underperform in value-oriented markets compared to its value-focused competitors.

Historical Performance: Past performance is not indicative of future results. Review historical data from reliable sources such as Invesco's website or financial data providers for accurate figures. As of October 25, 2024, 1-year return for DWAS is 23.13%, 3-year return is 7.60%, 5-year return is 8.91%, and 10-year return is 10.03%.

Benchmark Comparison: Compare DWAS performance against the Dorsey Wright SmallCap Technical Leaders Index, Russell 2000 and S&P 600 Small Cap. These are common benchmarks for small-cap funds.

Expense Ratio: 0.6

Average Trading Volume

DWAS exhibits a moderate average trading volume, generally indicating sufficient liquidity for typical trading activity.

Bid-Ask Spread

The bid-ask spread for DWAS is generally competitive, reflecting sufficient liquidity for most investors.

Market Environment Factors

Economic indicators, sector growth prospects within the small-cap universe, and overall market sentiment influence DWAS's performance. Momentum strategies tend to perform well during periods of rising markets and economic growth.

Growth Trajectory

DWAS's growth trajectory is dependent on the continued adoption of momentum-based investing strategies and the performance of the small-cap market. Changes to the underlying index methodology and holdings can also impact its future growth.

Competitive Edge

DWAS's competitive edge lies in its distinctive momentum-based investment strategy, leveraging the Dorsey Wright relative strength methodology. This unique approach potentially captures outperformance by identifying stocks with strong upward price trends. The fund's transparent and rules-based methodology provides a disciplined framework for portfolio construction. Invesco's established brand and expertise in ETF management further enhance DWAS's credibility and appeal to investors seeking momentum-focused small-cap exposure.

Volatility

DWAS's historical volatility can be assessed using metrics such as standard deviation and beta. Due to its momentum strategy, it may exhibit higher volatility compared to broad market small-cap ETFs.

Market Risk

DWAS is subject to market risk, particularly the risk associated with small-cap stocks and potential sector concentration. Changes in market sentiment and economic conditions can significantly impact its performance.

Ideal Investor Profile

The ideal investor for DWAS is someone who seeks capital appreciation through exposure to small-cap stocks with strong momentum characteristics and is comfortable with moderate to high volatility.

Market Risk

DWAS is more suitable for investors with a higher risk tolerance and a medium to long-term investment horizon. It is less appropriate for risk-averse investors or those seeking stable income.

The Invesco DWA SmallCap Momentum ETF (DWAS) offers investors exposure to a portfolio of approximately 200 US small-cap stocks exhibiting strong momentum characteristics, using the Dorsey Wright relative strength methodology. DWAS is a unique choice in the ETF market, it can be influenced by volatile market conditions. Its momentum-driven strategy makes it potentially rewarding for investors seeking capital appreciation, but it also comes with higher volatility compared to broader market ETFs. Investors should consider their risk tolerance and investment horizon before investing in DWAS. The fund would benefit from outperforming against its benchmark to increase investor confidence.

• IJR
• VBR
• SLY
• VB
• AVUV

Data Sources:

• Invesco Website
• Morningstar
• ETF.com

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and risk tolerance.