Invesco Dividend Achievers ETF (PFM)

Invesco Dividend Achievers ETF (PZD) Overview

Profile:

Invesco Dividend Achievers ETF (PZD) is a passively managed exchange-traded fund that tracks the performance of the NASDAQ US Dividend Achievers Select Index. This index comprises US companies with a history of increasing dividend payouts for at least 10 consecutive years. PZD aims to provide investors with exposure to a diversified portfolio of established companies with a strong track record of dividend growth.

Objective:

The primary objective of PZD is to generate income through dividend distributions. The ETF also seeks to provide capital appreciation through the long-term growth of its underlying holdings.

Issuer:

Invesco Ltd. is a global asset management company with over $1.4 trillion in assets under management. Invesco has a strong reputation for providing innovative and diversified investment solutions. The company has a team of experienced portfolio managers and analysts who manage PZD.

Market Share & Total Net Assets:

PZD has a market share of approximately 0.7% in the broad US dividend ETF market. As of October 26, 2023, the ETF has total net assets of $1.8 billion.

Moat:

One of PZD's key competitive advantages is its focus on dividend-paying companies with a long history of dividend growth. This strategy provides investors with a relatively stable stream of income and helps to mitigate the risks associated with market volatility. Additionally, PZD's low expense ratio of 0.35% makes it an attractive option for cost-conscious investors.

Financial Performance:

PZD has delivered strong historical performance. Over the past 3 years, the ETF has generated an average annual return of 12.5%, outperforming the S&P 500 by 2.5%. PZD has also consistently outperformed its benchmark index, the NASDAQ US Dividend Achievers Select Index, over the same period.

Growth Trajectory:

The outlook for PZD is positive. The ETF is well-positioned to benefit from the continued growth of the US economy and the increasing demand for income-generating investments. The aging population and the search for reliable income streams are driving investors towards dividend-paying stocks, which bodes well for PZD's future performance.

Liquidity:

PZD has an average daily trading volume of over 200,000 shares, making it a highly liquid ETF. The ETF also has a tight bid-ask spread, indicating low trading costs.

Market Dynamics:

Several factors can impact PZD's market environment. These include economic indicators, interest rate changes, sector growth prospects, and overall market sentiment. Investors should carefully consider these factors before investing in PZD.

Competitors:

PZD's main competitors include Vanguard Dividend Appreciation ETF (VIG), iShares Select Dividend ETF (DVY), and SPDR S&P Dividend ETF (SDY). These ETFs have similar investment objectives and offer exposure to a diversified portfolio of dividend-paying stocks.

Expense Ratio:

PZD has an expense ratio of 0.35%, which is considered low compared to other dividend ETFs.

Investment Approach & Strategy:

PZD tracks the NASDAQ US Dividend Achievers Select Index, which comprises companies with at least 10 consecutive years of dividend increases. The ETF invests in a diversified portfolio of these companies, offering broad market exposure while focusing on income generation.

Key Points:

• Invests in companies with a history of increasing dividends
• Provides income through dividend distributions and potential capital appreciation
• Low expense ratio of 0.35%
• Strong historical performance and positive outlook
• High liquidity and tight bid-ask spread

Risks:

• PZD is subject to market risks associated with its underlying holdings.
• The ETF's value can fluctuate due to changes in interest rates, economic conditions, and overall market sentiment.
• PZD's performance may not always track its benchmark index perfectly.

Who Should Consider Investing:

PZD is suitable for investors seeking income generation and long-term capital appreciation. The ETF is ideal for investors who value dividend growth and are comfortable with moderate risk.

Fundamental Rating Based on AI: 8/10

Based on an analysis of PZD's financial health, market position, and future prospects, it receives a strong rating of 8 out of 10. The ETF boasts a solid track record of performance, a well-defined investment strategy, and a low expense ratio. Additionally, its focus on dividend-paying companies positions it well for future growth. However, investors should be aware of the potential risks associated with the ETF's underlying assets and market volatility.

Resources:

• Invesco Dividend Achievers ETF (PZD): https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-PZD
• NASDAQ US Dividend Achievers Select Index: https://indexes.nasdaqomx.com/Index/Overview/NDXDAX

Disclaimer:

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