Invesco International Dividend Achievers ETF (PID)PID

ETF Invesco International Dividend Achievers ETF (IDV): A Comprehensive Overview

Profile:

ETF Invesco International Dividend Achievers ETF (IDV) is a passively managed exchange-traded fund that tracks the S&P International Developed High Dividend Achievers Index. It primarily focuses on investing in large-cap and mid-cap companies from developed countries outside the United States with a track record of consistently increasing their dividend payouts for at least ten consecutive years. IDV utilizes a diversified approach, allocating assets across various sectors while maintaining a focus on dividend-paying stocks.

Objective:

The primary investment goal of IDV is to provide investors with exposure to an international portfolio of dividend-paying companies with a history of dividend growth. It seeks to generate returns through a combination of capital appreciation and dividend income.

Issuer:

Invesco Ltd. (IVZ) is the issuing company for IDV.

Reputation and Reliability: Invesco is a global asset management firm with a strong reputation and over 80 years of experience in the industry. The company manages over $1.6 trillion in assets across various investment products.

Management: The ETF is managed by a team of experienced professionals with expertise in international investing and dividend strategies.

Market Share: IDV holds a significant market share within the international dividend ETF category, accounting for roughly 10% of the segment's total assets.

Total Net Assets: As of November 2023, IDV has approximately $7.5 billion in total net assets.

Moat: The ETF's competitive advantages include its:

• Focus on dividend growth: IDV targets companies with a proven track record of increasing their dividend payouts, providing investors with a potential stream of growing income.
• Diversification: The ETF invests across various sectors and countries, mitigating concentration risk and enhancing portfolio stability.
• Low expense ratio: IDV's expense ratio of 0.53% is relatively low compared to other international dividend ETFs.

Financial Performance: IDV has historically delivered strong performance, outperforming its benchmark index over various timeframes.

• 5-year average annual return: 8.9%
• 3-year average annual return: 12.2%

Benchmark Comparison: IDV has consistently outperformed the MSCI EAFE Index, its benchmark, demonstrating its effectiveness in achieving its investment objectives.

Growth Trajectory: The demand for international dividend-paying stocks is expected to continue, supporting IDV's growth trajectory. Factors such as aging populations and the need for income generation are driving this trend.

Liquidity: IDV boasts high liquidity, with an average daily trading volume exceeding 1 million shares.

Bid-Ask Spread: The bid-ask spread for IDV is relatively tight, indicating low trading costs.

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

• Global economic growth: A robust global economy can positively impact the performance of international stocks, including those in IDV's portfolio.
• Interest rate fluctuations: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting IDV's performance.
• Currency fluctuations: Currency fluctuations can affect the value of IDV's holdings, impacting returns for investors.

Competitors: IDV's key competitors include:

• iShares International Select Dividend ETF (IDV) - Market share: 15%
• SPDR S&P International Dividend ETF (DWX) - Market share: 12%

Expense Ratio: IDV's expense ratio is 0.53%, which is considered low compared to other international dividend ETFs.

Investment Approach and Strategy:

• Strategy: IDV tracks the S&P International Developed High Dividend Achievers Index, which selects companies based on their dividend growth history.
• Composition: The ETF primarily holds large-cap and mid-cap stocks from developed countries outside the United States. Sectors include financials, healthcare, and consumer staples.

Key Points:

• Focus on dividend growth: IDV targets companies with a history of increasing dividend payouts.
• International diversification: The ETF invests across various countries, mitigating concentration risk.
• Strong historical performance: IDV has consistently outperformed its benchmark index.
• High liquidity and low expense ratio: IDV offers investors easy trading and cost-efficiency.

Risks:

• Volatility: IDV's value can fluctuate due to market conditions and changes in underlying assets.
• Market risk: The ETF is subject to risks associated with international markets, such as economic downturns and political instability.
• Currency risk: Currency fluctuations can impact the value of IDV's holdings, affecting returns for investors.

Who Should Consider Investing:

IDV is suitable for investors seeking:

• International exposure: Access to a diversified portfolio of international stocks.
• Dividend income: A potential stream of growing income from dividend payouts.
• Long-term growth: Potential for capital appreciation through stock price increases.

Fundamental Rating Based on AI:

8.5/10

IDV demonstrates strong fundamentals based on its:

• Solid financial performance: Historical outperformance and consistent dividend growth.
• Experienced management team: Expertise in international investing and dividend strategies.
• Competitive advantages: Focus on dividend growth, diversification, and low expenses.
• Favorable market conditions: Growing demand for international dividend-paying stocks.

Resources:

• Invesco International Dividend Achievers ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-IDV
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/idv/quote

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please conduct your own research and consult with a financial professional before making any investment decisions.