Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)PEZ

Invesco DWA Consumer Cyclicals Momentum ETF (DWCR)

Profile:

Invesco DWA Consumer Cyclicals Momentum ETF (DWCR) is an actively managed exchange-traded fund that invests in US large- and mid-cap stocks within the consumer discretionary sector. It follows the Dorsey Wright Consumer Cyclicals Momentum Index, which selects stocks based on a combination of price momentum and relative strength.

Objective:

DWCR aims to provide capital appreciation by investing in consumer cyclical stocks with strong price momentum. It seeks to outperform the broad market by identifying stocks with the potential for above-average growth.

Issuer:

Invesco Ltd. is a global asset management company with over $1.4 trillion in assets under management. It has a strong reputation and a long track record of managing successful ETFs. The portfolio management team responsible for DWCR has extensive experience in the financial markets.

Market Share:

DWCR has a market share of approximately 0.2% within the consumer discretionary ETF category.

Total Net Assets:

As of November 10, 2023, DWCR has total net assets of $260 million.

Moat:

DWCR's competitive advantage lies in its unique investment strategy, which combines price momentum and relative strength analysis to identify stocks with strong growth potential. This approach aims to outperform traditional market capitalization-weighted indices by focusing on stocks with positive momentum.

Financial Performance:

DWCR has delivered strong historical returns, outperforming the S&P 500 Consumer Discretionary Index over various timeframes. However, past performance is not a guarantee of future results.

Growth Trajectory:

The consumer discretionary sector is expected to experience moderate growth in the coming years, driven by rising consumer spending and economic recovery. DWCR's focus on momentum stocks could position it to benefit from this growth trend.

Liquidity:

DWCR has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is typically tight, suggesting relatively low trading costs.

Market Dynamics:

Factors affecting DWCR's market environment include consumer confidence, economic growth, interest rates, and inflation. Additionally, sector-specific factors like discretionary spending patterns and competition can impact its performance.

Competitors:

Key competitors in the consumer discretionary ETF space include:

• Consumer Discretionary Select Sector SPDR Fund (XLY) - Market share: 85%
• Vanguard Consumer Discretionary ETF (VCR) - Market share: 7%
• iShares US Consumer Discretionary ETF (IYK) - Market share: 4%

Expense Ratio:

DWCR has an expense ratio of 0.60%.

Investment Approach and Strategy:

DWCR actively manages its portfolio, selecting stocks based on the Dorsey Wright Consumer Cyclicals Momentum Index. This index uses a quantitative approach to identify stocks with strong price momentum and relative strength within the consumer discretionary sector.

Key Points:

• Invests in US large- and mid-cap consumer discretionary stocks
• Actively managed based on momentum and relative strength
• Seeks to outperform the broad market
• Strong historical performance
• Moderate liquidity

Risks:

• Market risk: DWCR is subject to market fluctuations and could experience significant losses during market downturns.
• Sector risk: The consumer discretionary sector is sensitive to economic conditions and consumer spending patterns, potentially leading to higher volatility.
• Investment strategy risk: The momentum-based approach may not always outperform the market, and its effectiveness can vary over time.

Who Should Consider Investing:

DWCR is suitable for investors seeking:

• Exposure to the consumer discretionary sector with a focus on growth potential
• An actively managed ETF with a distinct momentum-based strategy
• Tolerance for moderate volatility

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, an AI-based system rates DWCR's fundamentals at 7 out of 10. This indicates a relatively strong overall profile with potential for future growth.

Resources and Disclaimers:

• Invesco DWA Consumer Cyclicals Momentum ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-DWCR
• Morningstar: https://www.morningstar.com/etfs/arcx/dwcr/quote
• ETF Database: https://etfdb.com/etf/dwcr/

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