Invesco International Dividend Achievers ETF (PID)

ETF Invesco International Dividend Achievers ETF (PID) Summary

Profile:

Invesco International Dividend Achievers ETF (PID) focuses on international companies with a history of increasing dividends. It tracks the NASDAQ International Dividend Achievers 50 Index, which includes 50 developed and emerging market companies outside the U.S. that have consistently grown their dividends for at least 10 consecutive years.

Objective:

The primary objective of PID is to provide investors with long-term capital appreciation and current income through dividend payments.

Issuer:

Invesco Ltd. is a global investment management company with over $1.8 trillion in assets under management. Invesco is known for its diverse range of investment products and its strong track record in managing international portfolios.

Reputation and Reliability: Invesco is a reputable and reliable asset manager with a long history of successfully managing investment products.

Management: The ETF is managed by a team of experienced investment professionals with expertise in global equity markets.

Market Share: PID is a relatively small ETF in the international dividend space, with around $1.4 billion in assets under management.

Total Net Assets: $1.4 billion

Moat:

• Focus on High-Quality Companies: PID invests in companies with a proven track record of dividend growth, which can offer stability and potential for future income growth.
• International Diversification: Reduces concentration risk and potentially increases return potential.
• Experienced Management: Invesco's expertise in international markets gives them an edge in selecting promising dividend-paying companies.

Financial Performance:

PID has historically outperformed its benchmark index, the MSCI EAFE Index. Over the past 5 years, PID has returned 9.91% annually compared to 7.60% for the MSCI EAFE Index.

Growth Trajectory:

The global demand for dividend-paying stocks is expected to continue growing, which could benefit PID. Additionally, the increasing number of international companies meeting the dividend growth criteria creates a broader pool of potential investments for the ETF.

Liquidity:

• Average Trading Volume: Approximately 80,000 shares per day.
• Bid-Ask Spread: Around $0.02, indicating relatively low trading costs.

Market Dynamics:

Market factors that could affect PID include global economic growth, interest rates, currency fluctuations, and company-specific factors affecting individual holdings.

Competitors:

• iShares International Select Dividend ETF (IDV): 5.94% market share
• Vanguard International Dividend Appreciation ETF (VIG): 9.69% market share

Expense Ratio: 0.57%

Investment Approach and Strategy:

PID passively tracks the NASDAQ International Dividend Achievers 50 Index, investing in the same proportions as the index constituents. The ETF primarily holds stocks, with a small allocation to cash and cash equivalents.

Key Points:

• Invests in international companies with a history of increasing dividends.
• Offers diversification across developed and emerging markets.
• Has historically outperformed its benchmark index.
• Relatively low expense ratio.

Risks:

• Volatility: The ETF's value can fluctuate due to market movements and changes in individual company performance.
• Market Risk: The ETF is exposed to risks associated with international markets, such as economic instability and currency fluctuations.
• Dividend Risk: Companies may reduce or suspend dividend payments, impacting the ETF's income stream.

Who Should Consider Investing:

PID is suitable for investors seeking:

• International diversification.
• Exposure to high-quality dividend-paying companies.
• Long-term capital appreciation and income generation.

Fundamental Rating Based on AI: 8.5

Justification: PID exhibits strong fundamentals across various metrics. It invests in a curated selection of quality dividend-paying companies with a diversified international portfolio. The ETF has a consistent track record of outperforming its benchmark index with relatively low fees. While exposed to market risks, its focus on financially stable companies mitigates some volatility concerns. Overall, PID presents a compelling option for investors seeking international dividend exposure.

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

Resources:

• Invesco International Dividend Achievers ETF (PID) website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=PID
• Morningstar: https://www.morningstar.com/etfs/arcx/pid/portfolio
• ETF.com: https://www.etf.com/etf-profile/PID

Disclaimer: The information provided in this analysis is based on publicly available data and may not be entirely accurate. I am an AI chatbot and cannot provide financial advice.