Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)

ETF Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF): Comprehensive Overview

Profile:

Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) is a passively managed exchange-traded fund that tracks the FTSE RAFI Developed Markets ex-US 1000 Index. PXF provides investors with exposure to large-cap and mid-cap stocks in developed markets outside the United States. It invests in approximately 1000 securities across various sectors, with a focus on companies with strong fundamentals and potential for long-term growth.

Objective:

The primary investment goal of PXF is to provide long-term capital appreciation by replicating the performance of the FTSE RAFI Developed Markets ex-US 1000 Index.

Issuer:

Invesco Ltd. is a global investment management company with over $1.7 trillion in assets under management. Invesco has a strong reputation and a long track record in the investment management industry.

Management:

Invesco's experienced portfolio management team oversees the construction and management of PXF. The team uses a quantitative approach to select stocks with strong fundamentals and long-term growth potential.

Market Share & Total Net Assets:

PXF has a market share of approximately 0.3% in the developed markets ex-US ETF category. It has total net assets of approximately $4.4 billion as of November 2nd, 2023.

Moat:

PXF's competitive advantages include its unique investment strategy, which focuses on fundamental factors rather than market capitalization. This approach may lead to outperformance in periods of market volatility or when growth opportunities are scarce. Additionally, Invesco has a strong reputation and a large asset base, which allows PXF to benefit from economies of scale and attract new investors.

Financial Performance:

PXF has historically outperformed its benchmark index, the FTSE Developed ex US Index, over the past 5 years. However, it is important to note that past performance does not guarantee future results.

Growth Trajectory:

The global developed markets outside the United States are expected to experience moderate economic growth in the coming years. This suggests that PXF is well-positioned for long-term growth.

Liquidity:

PXF has an average daily trading volume of over 100,000 shares, which indicates its liquidity. The bid-ask spread is typically tight, suggesting that investors can buy and sell shares without significant price impact.

Market Dynamics:

Economic indicators, sector growth prospects, and current market conditions influence the developed markets outside the US. PXF's performance could be affected by these factors.

Competitors:

Key competitors of PXF include iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE Developed Markets ETF (VEA). These ETFs have similar investment objectives and track different indices.

Expense Ratio:

PXF has an expense ratio of 0.39%, which is relatively low compared to other actively managed ETFs in its category.

Investment Approach:

PXF tracks the FTSE RAFI Developed Markets ex-US 1000 Index, which uses a fundamental weighting methodology. PXF invests in large-cap and mid-cap stocks from developed markets outside the United States, with a focus on fundamentals such as profitability, cash flow, and dividends.

Key Points:

• PXF provides diversified exposure to large-cap and mid-cap stocks in developed markets outside the US.
• PXF has a unique investment strategy based on fundamental factors.
• PXF has a strong track record of outperforming its benchmark index.
• PXF has a competitive expense ratio.

Risks:

• PXF is subject to market risk, as its value can fluctuate with the broad market.
• PXF is subject to specific risks associated with the underlying assets, such as changes in interest rates, economic conditions, and company-specific factors.

Who Should Consider Investing:

PXF is suitable for investors seeking long-term capital appreciation through exposure to developed markets outside the United States. PXF is a good option for investors who prefer a passively managed index-tracking approach with a focus on fundamentals.

Fundamental Rating Based on AI:

After analyzing various factors such as financial health, market position, and future prospects, PXF receives a 7 out of 10 AI-based fundamental rating. This rating indicates that PXF has strong fundamentals and is a potentially attractive investment for long-term investors with a moderate risk tolerance.

Disclaimer:

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

Resources:

• Invesco FTSE RAFI Developed Markets ex-U.S. ETF - https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=PXF
• FTSE RAFI Developed Markets ex-US 1000 Index - https://www.ftserussell.com/indices/ftse-rafi-developed-markets-ex-us-index

This information is accurate as of November 2nd, 2023. Please note that financial markets are constantly changing, and this information may no longer be accurate.