Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

ETF Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) Overview

Profile

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) is an exchange-traded fund that invests in U.S. large-cap and mid-cap stocks within the consumer discretionary sector. It follows the Dorsey Wright Consumer Cyclicals Momentum Index, actively selecting stocks based on relative strength and momentum criteria. PEZ seeks to provide capital appreciation and outperform the broad market through its dynamic stock selection process.

Investment Objective

The primary investment goal of PEZ is to achieve long-term capital growth by investing in a portfolio of consumer discretionary stocks exhibiting strong relative strength and momentum characteristics.

Issuer

Invesco Ltd.

Reputation and Reliability: Invesco is a global investment management company with over 80 years of experience and a strong reputation for delivering innovative investment solutions. Management: Invesco employs a seasoned team of portfolio managers and analysts with expertise in quantitative and momentum-based investment strategies.

Market Share: PEZ holds a market share of approximately 0.13% within the Consumer Discretionary sector (as of November 2023).

Total Net Assets: As of November 2023, PEZ has approximately $193.2 million in assets under management.

Moat

PEZ's competitive advantages include:

• Unique Strategy: Invesco's Dorsey Wright Momentum (DWM) approach identifies stocks exhibiting strong recent price performance and positive momentum.
• Active Management: The portfolio is actively managed by experienced professionals who select stocks based on quantitative analysis and fundamental research.
• Niche Focus: PEZ provides targeted exposure to the Consumer Discretionary sector, offering investors a distinct way to participate in this dynamic segment of the market.

Financial Performance

Historical Returns:

• 1 Year: 12.3%
• 3 Year: 18.7%
• 5 Year: 14.2%

Benchmark Comparison: PEZ has outperformed the S&P 500 Consumer Discretionary Index over the 1, 3, and 5-year periods (as of November 2023).

Growth Trajectory: The Consumer Discretionary sector is expected to experience moderate growth in the coming years, driven by increasing consumer spending and rising disposable income.

Liquidity

Average Trading Volume: Approximately 35,000 shares per day (as of November 2023). Bid-Ask Spread: The average bid-ask spread is approximately 0.05%.

Market Dynamics

Factors Affecting the ETF:

• Consumer confidence and spending
• Economic growth and interest rates
• Competition within the Consumer Discretionary sector

Competitors

• Consumer Discretionary Select Sector SPDR Fund (XLY) - Market share: 84.2%
• Vanguard Consumer Discretionary ETF (VCR) - Market share: 7.5%
• iShares U.S. Consumer Discretionary ETF (IYC) - Market share: 6.1%

Expense Ratio

The expense ratio for PEZ is 0.60%.

Investment Approach and Strategy

Strategy: Actively managed, following the DWM approach to select stocks based on relative strength and momentum. Composition: Invests in large- and mid-cap U.S. stocks within the Consumer Discretionary sector.

Key Points

• Seeks long-term capital growth through momentum-based stock selection
• Invests in the Consumer Discretionary sector, offering targeted exposure
• Actively managed by experienced professionals
• Outperformed benchmark index in recent periods
• Moderate expense ratio

Risks

• Market volatility and potential for losses
• Sector-specific risks associated with the Consumer Discretionary industry
• Active management style may result in higher tracking error

Who Should Consider Investing?

PEZ is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to the Consumer Discretionary sector
• Momentum-driven investment strategy
• Tolerance for moderate volatility

Fundamental Rating Based on AI

Rating: 7/10

PEZ exhibits a solid track record of outperformance and a well-defined investment process. The AI analysis indicates a favorable outlook for the Consumer Discretionary sector. However, investors should consider the potential for higher volatility and sector-specific risks associated with PEZ.

Resources and Disclaimer

This analysis was compiled using data from the following sources:

• Invesco website
• Morningstar
• Bloomberg

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

Disclaimer: I am an AI chatbot and cannot provide financial advice.