Invesco DWA Emerging Markets Momentum ETF (PIE)

Overview

The Invesco DWA Emerging Markets Momentum ETF (PIE) seeks to track the investment results of the Dorsey Wright Emerging Markets Technical Leaders Index. It focuses on emerging market equities with strong relative strength and momentum characteristics.

Reputation and Reliability

Invesco is a well-established global investment management firm with a long history and significant AUM, indicating high reliability.

Management Expertise

Invesco has a dedicated team of portfolio managers and analysts with experience in managing ETFs and emerging market investments.

Goal

The ETF aims to provide investment results that correspond generally to the price and yield of the Dorsey Wright Emerging Markets Technical Leaders Index.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index that identifies companies in emerging markets with superior relative strength characteristics.

Composition The ETF primarily holds stocks of companies located in emerging market countries. Holdings are selected based on momentum and relative strength factors.

Market Share: PIE holds a moderate market share in the emerging market momentum ETF category.

Total Net Assets (AUM): 317800000

Key Competitors

• iShares MSCI Emerging Markets ETF (EEM)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging market ETF space is dominated by large, broad-based ETFs like EEM and VWO. PIE differentiates itself with a momentum-based strategy, potentially offering higher returns but also increased volatility compared to broader market ETFs. PIE's advantage is its momentum-focused strategy, potentially leading to outperformance during trending markets. However, it may underperform in choppy or declining markets compared to broader ETFs.

Historical Performance: Historical performance can be obtained from financial websites, including total return and NAV data. Example: 1 year return 2.1%, 5 year return -2.3%.

Benchmark Comparison: The ETF's performance should be compared to the Dorsey Wright Emerging Markets Technical Leaders Index to assess tracking accuracy. It should be also compared to broader EM ETFs like EEM.

Expense Ratio: 0.62

Average Trading Volume

The ETF has an average trading volume that indicates reasonable liquidity.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating cost-effective trading.

Market Environment Factors

Emerging market growth rates, currency fluctuations, trade policies, and geopolitical events significantly impact PIE's performance.

Growth Trajectory

PIE's growth trajectory is tied to the performance of emerging market equities and the effectiveness of its momentum-based strategy. Changes in sector allocations and stock selection may also impact its performance.

Competitive Edge

PIEu2019s competitive advantage lies in its unique momentum-based investment strategy, which differentiates it from traditional market-cap-weighted emerging market ETFs. This strategy aims to capture gains from stocks with strong price momentum, potentially leading to higher returns. However, this strategy can also result in higher turnover and increased volatility. The fundu2019s distinct approach attracts investors seeking potentially higher returns in emerging markets through a factor-based strategy.

Volatility

PIE's volatility is likely to be higher than broad emerging market ETFs due to its momentum strategy and concentrated holdings.

Market Risk

PIE is subject to emerging market risks, including political instability, currency fluctuations, and economic downturns. It also faces the risk that the momentum strategy may underperform in certain market conditions.

Ideal Investor Profile

The ideal investor is one who understands momentum investing and is willing to accept higher volatility for potentially higher returns in emerging markets.

Market Risk

The ETF is suitable for investors with a higher risk tolerance, seeking potential growth in emerging markets and willing to accept fluctuations in value due to market conditions and the fund's momentum strategy.

Invesco DWA Emerging Markets Momentum ETF (PIE) provides exposure to emerging market equities with strong momentum characteristics, potentially offering higher returns than broad market ETFs. However, its momentum-based strategy can result in increased volatility and turnover. The fund is suitable for investors with a higher risk tolerance seeking growth in emerging markets. Investors should carefully consider their investment objectives and risk tolerance before investing in PIE. PIEu2019s momentum-driven approach differentiates it from broader emerging market ETFs but also introduces unique risks associated with factor-based investing.

Data Sources:

• Invesco Official Website
• Morningstar
• ETF.com
• FactSet

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor. Market data is subject to change.