Invesco Dividend Achievers ETF (PFM)PFM

ETF Invesco Dividend Achievers ETF (PZD) Summary

Profile: PZD is an actively managed ETF that invests in U.S. companies with a history of increasing dividends for at least 10 consecutive years. It seeks to provide income and capital appreciation through a diversified portfolio of dividend-paying stocks.

Objective: The primary objective is to achieve high current income and long-term capital appreciation by investing in companies with a track record of dividend growth.

Issuer: Invesco Ltd. is a global investment management company with a strong reputation and long history dating back to 1935. They manage over $1.4 trillion in assets across a variety of investment products.

Market Share: PZD has a market share of approximately 0.7% in the U.S. dividend ETF category.

Total Net Assets: As of November 10, 2023, PZD has total net assets of approximately $1.8 billion.

Moat: PZD's competitive advantages include its:

• Actively managed approach: The portfolio manager actively selects stocks based on their dividend growth potential, providing flexibility and potentially higher returns.
• Diversified portfolio: The ETF holds over 100 stocks across various sectors, reducing concentration risk.
• Experienced management team: The portfolio manager has extensive experience in managing dividend-focused portfolios.

Financial Performance: PZD has historically outperformed its benchmark, the S&P 500 Index, in terms of both total return and dividend yield.

• Year-to-date return (as of November 10, 2023): 10.5%
• Average annual return (3 years): 12.8%
• Dividend yield: 2.5%

Liquidity: PZD is a relatively liquid ETF with an average daily trading volume of over 200,000 shares. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics: The ETF's market environment is influenced by factors such as:

• Interest rate environment: Rising interest rates can make dividend-paying stocks less attractive.
• Economic growth: A strong economy can support dividend growth.
• Sector performance: The performance of specific sectors represented in the ETF can impact its overall return.

Competitors: Major competitors include:

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab U.S. Dividend Equity ETF (SCHD)
• iShares Core Dividend Growth ETF (DGRO)

Expense Ratio: PZD has an expense ratio of 0.39%.

Investment Approach and Strategy:

• Strategy: PZD actively selects stocks based on their dividend growth potential, financial strength, and valuation.
• Composition: The ETF primarily invests in large-cap U.S. stocks across various sectors, including consumer staples, utilities, and financials.

Key Points:

• Invests in companies with a history of increasing dividends.
• Aims for high current income and long-term capital appreciation.
• Actively managed by an experienced team.
• Diversified portfolio with over 100 stocks.
• Relatively liquid with low transaction costs.

Risks:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Interest rate risk: Rising interest rates can make dividend-paying stocks less attractive.
• Dividend cuts: Companies may reduce or eliminate their dividends, impacting the ETF's income.
• Sector concentration: The ETF's focus on dividend-paying stocks may make it more sensitive to changes in specific sectors.

Who Should Consider Investing: PZD is suitable for investors seeking:

• Income generation: The ETF provides a steady stream of dividend income.
• Long-term capital appreciation: The ETF has the potential for capital growth over time.
• Diversification: The ETF provides exposure to a variety of dividend-paying stocks.

Fundamental Rating Based on AI: 8.5/10

PZD's strong financial performance, experienced management team, and competitive advantages make it an attractive option for investors seeking dividend income and capital appreciation. However, investors should be aware of the potential risks associated with the ETF, such as market and interest rate risks.

Resources:

• Invesco website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-PZD
• ETF.com: https://www.etf.com/etf-profile/equity/pzd
• Morningstar: https://www.morningstar.com/etfs/arcx/pzd

Disclaimer: The information provided here is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.