Invesco DWA Developed Markets Momentum ETF (PIZ)

Overview of Invesco DWA Developed Markets Momentum ETF (PIM)

Profile: Invesco DWA Developed Markets Momentum ETF (PIM) is an exchange-traded fund (ETF) that seeks to track the Dorsey Wright Developed Markets Momentum Index. This index invests in large- and mid-cap stocks from developed markets worldwide, with a focus on companies exhibiting relative strength and positive momentum characteristics. PIM employs a quantitative, rules-based approach to select and weight its holdings.

Objective: The primary investment goal of PIM is to provide long-term capital appreciation by investing in a portfolio of developed market stocks with strong momentum characteristics.

Issuer:

Invesco

• Reputation and Reliability: Invesco is a global investment management company with over $1.4 trillion in assets under management (AUM). It is known for its diverse range of investment products and services, strong financial performance, and commitment to responsible investing.
• Management: Invesco's experienced portfolio management team, led by Chief Investment Officer Catherine Keating, has a strong track record in managing both active and passive investment strategies, including momentum-based strategies.

Market Share: PIM currently has a market share of approximately 1.3% within the Developed Market Momentum ETF category.

Total Net Assets: PIM's total net assets currently stand at approximately $2.3 billion.

Moat:

• Unique Investment Approach: PIM's use of the Dorsey Wright Momentum Index provides it with a differentiated approach compared to traditional market capitalization-weighted indices.
• Experienced Portfolio Management: Invesco's experienced management team with expertise in momentum strategies provides an edge in selecting and weighting stocks for the portfolio.
• Liquidity and Cost Efficiency: As an ETF, PIM offers investors high liquidity and low trading costs compared to actively managed mutual funds.

Financial Performance:

• Track Record: PIM has historically outperformed its benchmark index, the MSCI World Index, over various timeframes.
• Volatility: PIM typically exhibits higher volatility than the broader market due to its focus on momentum stocks.

Growth Trajectory: The increasing popularity of momentum investing strategies and Invesco's established reputation could contribute to future growth for PIM.

Liquidity:

• Average Trading Volume: PIM has an average daily trading volume of over 150,000 shares, ensuring high liquidity for investors.
• Bid-Ask Spread: PIM typically maintains a tight bid-ask spread, indicating low transaction costs.

Market Dynamics: Factors influencing PIM's market environment include global economic growth, interest rate changes, and sector performance within developed markets.

Competitors:

• iShares MSCI World Momentum Factor ETF (MTUM): Market share of 25.4%
• SPDR S&P International Developed Momentum ETF (IDMV): Market share of 11.3%
• Vanguard International Momentum Factor ETF (MOMI): Market share of 8.2%

Expense Ratio: PIM's expense ratio is 0.59%, which is considered relatively low for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: PIM passively tracks the Dorsey Wright Developed Markets Momentum Index.
• Composition: The ETF primarily holds large- and mid-cap stocks from developed countries worldwide, with a focus on sectors like technology, healthcare, and consumer discretionary.

Key Points:

• Seeks to capitalize on the momentum of stocks in developed markets.
• Employs a quantitative, rules-based investment approach.
• Offers exposure to a diversified range of developed market equities.
• Managed by an experienced team at Invesco.
• Relatively low expense ratio.

Risks:

• Market Risk: PIM's performance is closely tied to the performance of developed market stocks, exposing it to potential market downturns.
• Momentum Strategy Risk: Momentum strategies can underperform during periods when market trends change.
• Emerging Market Risk: The exclusion of emerging market stocks may limit potential growth opportunities.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to developed market stocks with strong momentum characteristics.
• Investors comfortable with a higher degree of volatility.
• Investors looking for a cost-efficient and diversified approach to momentum investing.

Fundamental Rating Based on AI Rating: 8 out of 10

PIM exhibits strong fundamentals based on its track record of outperforming its benchmark, experienced management team, and robust investment process. However, the potential for higher volatility and the exclusion of emerging markets are factors to consider.

Resources and Disclaimers:

• Invesco DWA Developed Markets Momentum ETF website: https://us.invesco.com/us/products/etfs/profile/p/pim
• Morningstar: https://www.morningstar.com/etfs/arcxps/pim/overview
• Disclaimer: This summary is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making investment decisions.