Invesco DWA Industrials Momentum ETF (PRN)

Invesco DWA Industrials Momentum ETF (PRN): Overview

Profile: PRN is an actively managed ETF that invests in large and mid-cap US industrial stocks with strong relative momentum. It employs Dorsey Wright & Associates' (DWA) proprietary momentum ranking methodology to select stocks.

Objective: The ETF aims to outperform the Russell 1000 Industrial Index by investing in stocks that exhibit strong positive price momentum.

Issuer: Invesco Ltd. is a global investment management firm with over $1.4 trillion in assets under management. Invesco has a strong reputation and long track record in the ETF industry.

Management: The ETF is managed by DWA, a quantitative research and investment firm specializing in momentum-based investment strategies. DWA has a team of experienced professionals with expertise in momentum investing.

Market Share: PRN has a market share of approximately 0.2% within the industrial sector ETF category.

Total Net Assets: As of November 10, 2023, PRN has approximately $273.9 million in total net assets.

Moat: PRN's competitive advantages include its unique momentum-based investment strategy, the experience of DWA, and its focus on the industrial sector.

Financial Performance:

• 1-Year Return: 12.32%
• 3-Year Return: 13.19%
• 5-Year Return: 15.47%

Benchmark Comparison: PRN has consistently outperformed the Russell 1000 Industrial Index over various timeframes.

Growth Trajectory: The industrial sector is expected to see continued growth due to factors such as increased infrastructure spending and rising demand for industrial products.

Liquidity:

• Average Trading Volume: 42,321 shares
• Bid-Ask Spread: 0.03%

Market Dynamics: The ETF's market environment is primarily influenced by factors such as economic growth, interest rates, and demand for industrial products.

Competitors:

• iShares U.S. Industrials ETF (IYJ): 13.9% market share
• Vanguard Industrials ETF (VIS): 12.2% market share
• SPDR S&P Industrial Select Sector ETF (XLI): 10.5% market share

Expense Ratio: 0.68%

Investment Approach and Strategy:

• Strategy: Actively managed, momentum-based strategy focused on the industrial sector.
• Composition: Large and mid-cap US industrial stocks selected based on DWA's momentum ranking methodology.

Key Points:

• Invests in US industrial stocks with strong momentum.
• Actively managed by DWA, a quantitative research firm specializing in momentum investing.
• Outperformed the Russell 1000 Industrial Index over various timeframes.
• Relatively low expense ratio of 0.68%.

Risks:

• Volatility: Higher volatility compared to the broader market due to its focus on momentum stocks.
• Market Risk: Performance is tied to the performance of the industrial sector, which can be affected by various economic factors.

Who Should Consider Investing:

• Investors seeking exposure to the industrial sector with a focus on momentum stocks.
• Investors comfortable with higher volatility.

Fundamental Rating Based on AI: 7.5/10

PRN exhibits strong fundamentals based on its historical performance, experienced management, and unique investment strategy. However, its relatively small size and higher volatility may not be suitable for all investors.

Resources:

• Invesco DWA Industrials Momentum ETF website: https://us.invesco.com/product/etf/overview/prn
• DWA website: https://www.dwainvesting.com/

Disclaimers:

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