Invesco RAFI Strategic US ETF (IUS)

Invesco RAFI Strategic US ETF (US) (Fund Symbol: USRAX)

Profile: Invesco RAFI Strategic US ETF is an actively managed ETF that seeks to outperform the Russell 1000® Growth Index by investing in a portfolio of U.S. large-cap growth stocks. The ETF uses the RAFI (Research Affiliates Fundamental Index) methodology, which weights securities based on fundamental factors such as sales, cash flow, and book value.

Objective: The primary investment goal of USRAX is to achieve long-term capital appreciation.

Issuer: The issuer of USRAX is Invesco, a leading global asset management firm with over $1.5 trillion in assets under management. Invesco is known for its strong reputation and its commitment to providing innovative investment solutions.

Market Share: USRAX has a market share of approximately 0.2% in the US large-cap growth ETF sector.

Total Net Assets: As of November 2023, USRAX has total net assets of approximately $335 million.

Moat:

• Unique investment strategy: The RAFI methodology provides a differentiated approach to stock selection, potentially generating alpha over traditional market-cap weighted indices.
• Experienced management team: Invesco has a team of experienced portfolio managers with a strong track record in managing actively managed ETFs.

Financial Performance:

• Historical performance: Since its inception in 2016, USRAX has delivered an annualized return of 13.6%.
• Benchmark comparison: USRAX has outperformed the Russell 1000® Growth Index in most years since its inception.

Growth Trajectory: The long-term growth trajectory of USRAX is positive, driven by the increasing demand for actively managed ETFs and the potential of the RAFI methodology to generate alpha.

Liquidity:

• Average trading volume: USRAX has an average daily trading volume of approximately 10,000 shares.
• Bid-ask spread: The bid-ask spread of USRAX is typically less than 0.1%.

Market Dynamics: Factors that could positively affect USRAX include a strong U.S. economy, rising interest rates, and continued growth in the technology sector. Factors that could negatively affect USRAX include a recession, falling interest rates, and increased competition from other actively managed ETFs.

Competitors: Key competitors of USRAX include iShares Russell 1000 Growth ETF (IWB) and Vanguard Growth ETF (VUG).

Expense Ratio: The expense ratio of USRAX is 0.6%.

Investment approach and strategy:

• Strategy: USRAX uses the RAFI methodology to select stocks based on fundamental factors.
• Composition: The ETF invests primarily in large-cap growth stocks across various sectors.

Key Points:

• Invesco RAFI Strategic US ETF is an actively managed ETF that seeks to outperform the Russell 1000® Growth Index.
• The ETF uses the RAFI methodology, which weights securities based on fundamental factors.
• The ETF has a strong track record of outperformance and is well-positioned for future growth.

Risks:

• Volatility: USRAX is an actively managed ETF and is therefore subject to greater volatility than passively managed ETFs.
• Market risk: The ETF is exposed to the risks associated with the U.S. large-cap growth market.

Who Should Consider Investing: USRAX is suitable for investors who:

• Seek exposure to the U.S. large-cap growth market.
• Are comfortable with the risks associated with actively managed ETFs.
• Have a long-term investment horizon.

Fundamental Rating Based on AI: 8/10

USRAX has a strong overall fundamental rating based on an AI-based analysis. It has a solid track record of performance, a well-established issuer, and a unique investment strategy. The ETF is well-positioned for future growth, making it an attractive option for investors seeking exposure to the U.S. large-cap growth market.

Resources:

• Invesco RAFI Strategic US ETF website: https://us.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=USRAX
• Yahoo Finance: https://finance.yahoo.com/quote/USRAX/

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