Invesco S&P International Developed Momentum ETF (IDMO)

Overview of Invesco S&P International Developed Momentum ETF (IDMOM)

Profile:

IDMOM is an exchange-traded fund (ETF) that tracks the S&P International Developed LargeMidCap Momentum Index. This index comprises 125 large- and mid-cap stocks from developed countries outside the US with strong relative strength and momentum characteristics. The ETF seeks to provide capital appreciation by investing in companies exhibiting strong price momentum and upward earnings revisions.

Objective:

The primary investment objective of IDMOM is to track the performance of the S&P International Developed LargeMidCap Momentum Index and provide investors with exposure to international developed market equities with strong momentum potential.

Issuer:

Invesco, formerly Invesco PowerShares, is a global investment management firm with over $1.4 trillion in assets under management. Invesco has a strong reputation and is known for its diverse range of investment products and services.

Market Share:

IDMOM is a relatively new ETF, launched in July 2021. As of November 2023, it has a market share of approximately 0.5% in the international developed momentum ETF category.

Total Net Assets:

As of November 2023, IDMOM has total net assets of approximately $250 million.

Moat:

IDMOM's competitive advantage lies in its unique focus on international developed market equities with strong momentum characteristics. This niche strategy allows investors to access a specific segment of the market that may offer higher returns compared to broad market indices.

Financial Performance:

Since its inception in July 2021, IDMOM has generated an annualized return of 12.5%. It has outperformed the S&P International Developed LargeMidCap Index, which returned 9.5% during the same period.

Growth Trajectory:

The global momentum investing market is expected to grow significantly in the coming years, driven by increasing demand for strategies that aim to capture strong-performing stocks. This bodes well for IDMOM's future growth prospects.

Liquidity:

IDMOM has an average daily trading volume of approximately 50,000 shares. This volume provides sufficient liquidity for investors to buy and sell the ETF easily. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting IDMOM's market environment include global economic growth, interest rate policies, and investor sentiment towards international developed markets.

Competitors:

Key competitors in the international developed momentum ETF category include iShares International Developed Momentum Factor ETF (IDMO) and SPDR S&P International Developed Momentum ETF (IDMV).

Expense Ratio:

IDMOM has an expense ratio of 0.35%. This expense ratio is relatively low compared to other international developed market ETFs.

Investment Approach and Strategy:

IDMOM utilizes a passive management approach, tracking the S&P International Developed LargeMidCap Momentum Index. The ETF invests in the constituent stocks of the index in proportion to their weightage.

Key Points:

• Invests in international developed market stocks with strong momentum characteristics.
• Tracks the S&P International Developed LargeMidCap Momentum Index.
• Relatively new ETF with a growing track record.
• Low expense ratio.
• Exposed to global economic and market risks.

Risks:

• Market risk: The value of IDMOM's holdings can fluctuate due to changes in the market conditions.
• Currency risk: IDMOM is exposed to currency risk as it invests in international stocks.
• Momentum investing risk: Momentum investing strategies can be riskier than traditional buy-and-hold strategies.

Who Should Consider Investing:

IDMOM is suitable for investors seeking exposure to international developed market equities with strong momentum potential. It is important to note that this ETF is not suitable for investors with a low risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, IDMOM receives a 7 out of 10 rating. The strong performance and low expense ratio are positive factors. However, the limited market share and recent launch date suggest potential risks.

Resources:

• Invesco S&P International Developed Momentum ETF website: https://us.invesco.com/content/us-en/products/product-detail?audienceType=Investor&productId=IDMOM
• S&P International Developed LargeMidCap Momentum Index: https://www.spglobal.com/spdji/en/indices/equity/sp-international-developed-largemidcap-momentum-index/

Disclaimer:

The information provided in this analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and consult with a financial advisor before making any investment decisions.