Invesco DWA SmallCap Momentum ETF (DWAS)DWAS

Invesco DWA SmallCap Momentum ETF (DWAS) Summary

Profile:

DWAS is an actively managed exchange-traded fund that invests in US small-cap stocks with strong relative price momentum. It follows the Dorsey Wright Momentum (DWM) strategy, using a proprietary quantitative model to identify stocks with the highest potential for price appreciation. The ETF's investments are spread across various sectors, with allocations based on the model's selection.

Objective:

The primary investment goal of DWAS is to achieve capital appreciation by investing in small-cap stocks with strong momentum characteristics.

Issuer:

Invesco Ltd. is the issuer of DWAS.

• Reputation and Reliability: Invesco is a global asset management firm with a long-standing reputation and a diverse range of investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and momentum investing.

Market Share:

DWAS has a market share of approximately 0.4% in the small-cap momentum ETF category.

Total Net Assets:

As of November 13, 2023, DWAS has total net assets of approximately $174 million.

Moat:

DWAS's competitive advantages include:

• Unique Strategy: The DWM strategy focuses on identifying stocks with strong momentum, which can potentially outperform the broader market.
• Experienced Management: The ETF is managed by a team of experienced portfolio managers with a proven track record in momentum investing.
• Cost Efficiency: The ETF has a relatively low expense ratio compared to other actively managed small-cap ETFs.

Financial Performance:

Historically, DWAS has outperformed its benchmark index, the Russell 2000 Index. However, it's important to note that past performance is not a guarantee of future results.

Growth Trajectory:

The small-cap growth market is expected to continue growing in the coming years, driven by positive economic conditions and technological advancements.

Liquidity:

DWAS has an average daily trading volume of approximately 200,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics:

Factors affecting DWAS's market environment include:

• Economic Growth: A strong economy can positively impact small-cap companies' growth prospects.
• Interest Rates: Rising interest rates can lead to higher borrowing costs for small-cap companies, potentially impacting their performance.
• Market Volatility: Increased market volatility can lead to higher price fluctuations for small-cap stocks.

Competitors:

Key competitors of DWAS include:

• iShares Russell 2000 Growth ETF (IWO) - Market Share: 6.5%
• Vanguard Small-Cap Growth ETF (VBK) - Market Share: 5.8%
• SPDR S&P 600 Small Cap Growth ETF (SLYG) - Market Share: 4.1%

Expense Ratio:

The expense ratio for DWAS is 0.63%.

Investment Approach and Strategy:

DWAS actively manages its portfolio according to the DWM quantitative model. The ETF invests in a diversified portfolio of small-cap stocks with strong momentum characteristics.

Key Points:

• Invests in small-cap stocks with strong momentum.
• Actively managed using a proprietary quantitative model.
• Historically outperformed its benchmark index.
• Relatively low expense ratio.

Risks:

• Market Risk: Small-cap stocks are generally more volatile than large-cap stocks.
• Momentum Risk: Momentum investing can be cyclical and sensitive to market changes.
• Management Risk: The ETF's performance depends on the effectiveness of the DWM model and the portfolio management team.

Who Should Consider Investing:

DWAS is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to small-cap stocks with strong momentum characteristics.
• Active management based on a quantitative model.

Fundamental Rating Based on AI:

7.5/10

DWAS received a 7.5/10 rating based on an AI-based analysis. The rating considers various factors, including the ETF's investment strategy, historical performance, competitive advantages, and expense ratio. The AI system assessed the ETF to have strong financial health, a solid market position, and promising future prospects.

Resources and Disclaimers:

• Invesco DWA SmallCap Momentum ETF webpage: https://us.invesco.com/etfs/en/product/details?audienceType=Investor&audienceSegment=Individual&productId=ETF-DWAS
• Morningstar Fund Report for DWAS: https://www.morningstar.com/etfs/xnas/dwas/quote

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