Invesco Dividend Achievers ETF (PFM)

Invesco Dividend Achievers ETF (PZD) Summary:

Profile:

PZD is an ETF that invests in US companies with a history of increasing dividends for at least 10 consecutive years. It primarily focuses on large-cap and mid-cap stocks across various sectors. The ETF passively tracks the NASDAQ US Dividend Achievers Select Index.

Objective:

The primary goal of PZD is to provide investors with long-term capital appreciation and current income through dividend payments from companies with a history of dividend growth.

Issuer:

Invesco is the issuer of PZD. It is a global asset management company with over 80 years of experience and $1.54 trillion in assets under management. Invesco has a strong reputation and track record in the market. The ETF is managed by a team of experienced portfolio managers with expertise in dividend-paying stocks.

Market Share:

PZD is one of the largest dividend-focused ETFs, with a market share of approximately 2.6% in the US dividend ETF market.

Total Net Assets:

As of November 15, 2023, PZD has total net assets of $13.44 billion.

Moat:

PZD's competitive advantages include:

• Focus on dividend-growing companies: This provides investors with a stream of income and the potential for capital appreciation.
• Proven track record: PZD has outperformed the S&P 500 Index in terms of total returns over the past 5 and 10 years.
• Experienced management team: The ETF is managed by a team of experienced professionals with expertise in dividend-paying stocks.
• Low expense ratio: The expense ratio of 0.30% is significantly lower than many other dividend ETFs.

Financial Performance:

Historical Performance:

• 1-year return: 16.5%
• 3-year return: 8.5%
• 5-year return: 12.1%
• 10-year return: 14.2%

Benchmark Comparison:

PZD has consistently outperformed the S&P 500 Index over the past 5 and 10 years.

Growth Trajectory:

The ETF has experienced consistent growth in both assets under management and number of shareholders. This suggests a positive future outlook.

Liquidity:

Average Trading Volume: 1.2 million shares

Bid-Ask Spread: 0.03%

This indicates that PZD is a highly liquid ETF, making it easy to buy and sell shares.

Market Dynamics:

Factors affecting PZD's market environment include:

• Interest rate hikes: Rising interest rates can make dividend-paying stocks less attractive to investors.
• Economic growth: A strong economy can lead to higher corporate profits and dividend payouts.
• Sector performance: The performance of the sectors represented in the ETF can impact its returns.

Competitors:

• Vanguard Dividend Appreciation ETF (VIG) - Market share: 6.5%
• iShares Core Dividend Growth ETF (DGRO) - Market share: 5.8%
• SPDR S&P Dividend ETF (SDY) - Market share: 4.2%

Expense Ratio:

The expense ratio of PZD is 0.30%.

Investment Approach and Strategy:

• Strategy: PZD passively tracks the NASDAQ US Dividend Achievers Select Index.
• Composition: The ETF invests primarily in large-cap and mid-cap stocks across various sectors, with a focus on companies that have increased their dividends for at least 10 consecutive years.

Key Points:

• Invests in companies with a history of dividend growth.
• Strong track record of outperforming the S&P 500 Index.
• Experienced management team.
• Low expense ratio.
• Highly liquid.

Risks:

• Volatility: The ETF's price can fluctuate due to changes in the market and interest rates.
• Market risk: The ETF is exposed to the risks associated with its underlying holdings, which include companies in various sectors.
• Dividend cuts: Companies may cut their dividends in the future, which would reduce the ETF's income stream.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and dividend income.
• Investors with a low tolerance for risk.
• Investors who believe that dividend-paying companies will outperform the broader market over time.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, PZD receives a fundamental rating of 8.5 out of 10. This suggests that the ETF is a strong investment option for investors seeking dividend income and long-term growth.

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

Resources:

• Invesco Dividend Achievers ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=PZD
• Zacks Investment Research: https://www.zacks.com/funds/etf/PZD/performance-compare
• Morningstar: https://www.morningstar.com/etfs/arcx/pzd/performance
• ETF Database: https://etfdb.com/etf/PZD/invesco-dividend-achievers-etf/

Please note that this information is based on data available as of November 15, 2023, and may be subject to change.