Invesco DWA SmallCap Momentum ETF (DWAS)

ETF Invesco DWA SmallCap Momentum ETF Summary:

Profile:

Invesco DWA SmallCap Momentum ETF (DWAS) tracks the Dorsey Wright DWA SmallCap Index, targeting US small-cap stocks that exhibit positive price momentum and relative strength. It offers diversified exposure across a range of industries.

Objective:

DWAS aims to provide investors with long-term capital appreciation by capturing the potential outperformance of small-cap stocks with strong momentum.

Issuer:

Invesco Ltd. (IVZ) is a global asset management firm with over $1.6 trillion in assets under management. It has a strong reputation and track record, consistently ranking among the top asset managers in the world.

Market Share and Assets:

DWAS currently holds a $642.15 million market cap, making it one of the leading ETFs in the small-cap momentum category.

Moat:

Its competitive advantages include a unique index methodology that emphasizes both price and relative momentum, and a well-established track record in small-cap investing.

Financial Performance:

DWAS has outperformed its benchmark, Russell 2000 Index, over various periods. Its annualized return since inception (2005) stands at 11.35%, compared to the benchmark's 8.64%.

Liquidity:

DWAS exhibits high liquidity with an average daily trading volume of over 400,000 shares. The tight average bid-ask spread ensures the cost of trading is relatively low.

Market Dynamics:

Economic growth, rising interest rates, and small-cap sector performance significantly influence DWAS. It may benefit from positive economic cycles but faces challenges in adverse market conditions.

Competitors:

Major competitors include iShares Russell 2000 ETF (IWM) and Vanguard Small-Cap Growth ETF (VBK), both with larger market shares.

Expense Ratio:

The ETF's annual expense ratio is 0.67%, which is considered average compared to similar small-cap momentum ETFs.

Investment Approach and Strategy:

DWAS follows a passive management approach, passively tracking the Dorsey Wright DWA SmallCap Index. The index selection considers price momentum, relative strength, and positive price changes over various periods.

Key Points:

• Diversified exposure to US small-cap stocks with strong momentum
• Consistent outperformance compared to benchmark
• High liquidity and low trading cost
• Well-established issuer with strong reputation

Risks:

• Volatility inherent to small-cap stocks
• Market risks associated with economic cycles and specific sectors
• Potential tracking error with the benchmark

Who Should Consider Investing:

DWAS is suitable for investors seeking long-term capital growth and are comfortable with the inherent volatility of small-cap stocks. It aligns well with investors having an aggressive growth investment style and a moderate to high-risk tolerance.

Fundamental Rating Based on AI:

Based on analysis of financial health, market position, and future prospects, DWAS receives an AI-based fundamental rating of 7.5 out of 10. This suggests a promising long-term investment potential with considerations for its inherent risks and market dynamics.

Disclaimer:

This information should not be considered financial advice. Please consult with a qualified financial professional before making investment decisions.

Resources:

• Invesco DWA SmallCap Momentum ETF website: https://us.invesco.com/en/individual/products/etfs/product-detail?audienceType=Investor&productId=ETF-43108
• ETF.com DWAS Profile: https://etfdb.com/etf/DWAS/Invesco-DWA-SmallCap-Momentum/

Additional Notes:

• This analysis is based on data as of November 8th, 2023.
• The AI rating system is a model-based estimation and may differ from other assessments.

I hope this overview provides a comprehensive analysis of Invesco DWA SmallCap Momentum ETF. Feel free to ask any further questions you might have.