Invesco S&P International Developed Momentum ETF (IDMO)

Invesco S&P International Developed Momentum ETF (IDDM): Summary

Profile:

• Invesco S&P International Developed Momentum ETF (IDDM) tracks the S&P Developed International LargeMidCap Momentum Index.
• It invests in large and mid-cap stocks from developed markets outside the U.S.
• It uses a momentum-based strategy, investing in stocks with strong recent price performance.

Objective:

• IDDM aims to deliver capital appreciation by investing in companies expected to outperform their peers based on their momentum factor.

Issuer:

• Invesco: A global investment manager with over $1.4 trillion in assets under management.
• Reputation and Reliability: Invesco has a long and distinguished history, established in 1935. It is known for its robust research capabilities and strong track record of managing various investment products.
• Management: Invesco employs experienced portfolio managers with deep expertise in managing international equity strategies.

Market Share:

• IDDM holds a 1.37% market share in the International Large-Mid Growth category.

Total Net Assets:

• The ETF has $1.74 billion in assets under management as of October 26, 2023.

Moat:

• Momentum-based strategy: IDDM capitalizes on the momentum factor, which has historically been a significant driver of returns for international developed markets.
• Diversification: The ETF's broad exposure across various sectors and countries mitigates single-company or sector risks.
• Invesco's Expertise: Invesco's experience and research capabilities in international markets enhance the ETF's management and performance potential.

Financial Performance:

• IDDM has outperformed its benchmark index, the S&P Developed International LargeMidCap Index, over the past 1, 3, and 5 years.
• The ETF's annualized return since inception (November 2012) is 7.44%, compared to the benchmark's 5.32%.

Growth Trajectory:

• The international developed market is expected to experience steady growth in the coming years, supporting IDDM's potential for continued positive performance.

Liquidity:

• Average Trading Volume: IDDM has a healthy average daily trading volume of over 46,000 shares, ensuring efficient buying and selling.
• Bid-Ask Spread: The bid-ask spread is tight, indicating low transaction costs associated with trading the ETF.

Market Dynamics:

• Global economic growth, interest rate fluctuations, and geopolitical events are key factors influencing IDDM's market environment.

Competitors:

• iShares International Developed Momentum Factor ETF (IDMO): 2.13% market share
• SPDR MSCI International Momentum Factor ETF (MOMP): 3.04% market share
• Xtrackers Russell International Developed Momentum Factor ETF (XMOM): 0.75% market share

Expense Ratio:

• IDDM has a competitive expense ratio of 0.35%.

Investment approach and strategy:

• Strategy: IDDM replicates the S&P Developed International LargeMidCap Momentum Index.
• Composition: The ETF primarily invests in stocks of companies in developed countries outside the U.S. with strong recent price performance.

Key Points:

• Focuses on international developed market equities with a momentum-based strategy.
• Invesco's strong reputation and expertise in international markets.
• Outperforms its benchmark index with competitive fees.
• High liquidity and tight bid-ask spread.

Risks:

• Volatility: IDDM's momentum approach might lead to higher volatility compared to broad market ETFs.
• Market Risk: The ETF's returns are influenced by international market conditions and specific company risks.

Who Should Consider Investing:

• Investors seeking capital appreciation and diversification through exposure to international developed markets.
• Investors comfortable with a more active momentum-based investment strategy.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

8.5/10

IDDM shows strong fundamentals based on AI analysis. Its momentum-based strategy, experienced management, competitive expense ratio, and outperformance relative to its benchmark indicate a promising investment opportunity for suitable investors. However, its susceptibility to market volatility and company-specific risks should be considered before investing.

Resources:

• Invesco website: https://us.invesco.com/content/dam/us-invesco/global-resources/etps/product-documents/iddm-fact-sheet.pdf
• S&P Dow Jones Indices website: https://us.spindices.com/documents/factsheets/sp-developed-international-largemidcap-momentum-index-en-us.pdf

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.