Invesco S&P Emerging Markets Momentum ETF (EEMO)EEMO

Invesco S&P Emerging Markets Momentum ETF (NYSEARCA: EEMV)

Profile:

Focus: This ETF invests in large and mid-cap stocks from emerging markets that exhibit strong momentum characteristics. Momentum investing focuses on identifying stocks that have experienced significant price increases in the recent past, with the expectation that this trend will continue.

Asset Allocation: Approximately 85% of the ETF's assets are invested in equities, with the remaining 15% allocated to cash and cash equivalents.

Investment Strategy: EEMV tracks the S&P Emerging Markets Momentum Index, which selects its constituents based on a combination of factors, including price momentum, relative strength, and quality. The ETF employs a full-replication strategy, meaning it holds all the securities in the underlying index in the same proportion.

Objective:

The primary objective of EEMV is to provide investors with long-term capital appreciation by tracking the performance of the S&P Emerging Markets Momentum Index.

Issuer:

Invesco: Invesco Ltd. is a leading global asset management company with over $1.6 trillion in assets under management (as of June 30, 2023). Invesco has a strong reputation in the industry and is known for its innovative investment solutions.

Reputation and Reliability: Invesco has a strong track record of managing ETFs and mutual funds. The company has received numerous awards and accolades for its investment performance and customer service.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in emerging markets investing.

Market Share:

EEMV has a market share of approximately 2.5% in the emerging markets momentum ETF category.

Total Net Assets:

As of October 27, 2023, EEMV has approximately $1.2 billion in total net assets.

Moat:

EEMV benefits from several competitive advantages, including:

• Unique Strategy: The ETF offers exposure to a specific segment of the emerging markets market, focusing on stocks with strong momentum characteristics.
• Experienced Management: The ETF is managed by a team of experienced professionals with a deep understanding of emerging markets investing.
• Cost-Effectiveness: EEMV has a relatively low expense ratio compared to other emerging markets momentum ETFs.

Financial Performance:

Historical Performance: EEMV has delivered strong historical returns. Since its inception in 2015, the ETF has generated an annualized return of over 10%.

Benchmark Comparison: EEMV has outperformed its benchmark, the MSCI Emerging Markets Index, over the past three and five years.

Growth Trajectory:

The outlook for emerging markets is positive, with continued economic growth and increasing investment opportunities. This bodes well for EEMV's future performance.

Liquidity:

Average Trading Volume: EEMV has an average daily trading volume of over 100,000 shares.

Bid-Ask Spread: The bid-ask spread for EEMV is typically tight, around 0.1%.

Market Dynamics:

Factors affecting EEMV's market environment include:

• Global Economic Growth: Strong economic growth in emerging markets can lead to increased investment opportunities and higher stock prices.
• Interest Rates: Rising interest rates in developed markets can lead to capital outflows from emerging markets, putting downward pressure on stock prices.
• Political Stability: Political instability in emerging markets can lead to increased volatility and lower stock prices.

Competitors:

Key competitors of EEMV include:

• iShares MSCI Emerging Markets Momentum Factor ETF (MTUM)
• SPDR S&P Emerging Markets Momentum ETF (Momentum)

Expense Ratio:

EEMV has an expense ratio of 0.55%.

Investment Approach and Strategy:

Strategy: EEMV tracks the S&P Emerging Markets Momentum Index, which selects its constituents based on a combination of factors, including price momentum, relative strength, and quality.

Composition: EEMV holds approximately 100 stocks from various sectors, including technology, financials, and consumer discretionary.

Key Points:

• Invests in large and mid-cap stocks from emerging markets with strong momentum characteristics.
• Tracks the S&P Emerging Markets Momentum Index.
• Strong historical performance and positive outlook.
• Relatively low expense ratio.

Risks:

• Volatility: Emerging markets can be more volatile than developed markets, leading to potential losses.
• Market Risk: The ETF's performance is directly tied to the performance of its underlying assets, which can be affected by various factors.
• Currency Risk: EEMV is exposed to currency risk, as its assets are denominated in various currencies.

Who Should Consider Investing:

• Investors seeking exposure to emerging markets with a focus on momentum investing.
• Investors with a long-term investment horizon and a tolerance for risk.

Fundamental Rating Based on AI:

AI Rating: 8.5

EEMV receives a high AI rating based on its strong financial performance, experienced management, and competitive advantages. The ETF has a solid track record of outperforming its benchmark and benefits from a cost-effective approach. However, investors should be aware of the potential risks associated with emerging markets investing.

Resources and Disclaimers:

• Invesco S&P Emerging Markets Momentum ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=EEMV
• Yahoo Finance: https://finance.yahoo.com/quote/EEMV?p=EEMV
• Morningstar: https://www.morningstar.com/etfs/arcx/eemv/quote

Disclaimer: This information is for educational purposes only and should not be considered financial advice. All investment decisions should be made with the help of a professional and after conducting independent research.