Invesco DWA Energy Momentum ETF (PXI)PXI

ETF Invesco DWA Energy Momentum ETF (PIZ) Overview

Profile:

Invesco DWA Energy Momentum ETF (PIZ) is an actively managed exchange-traded fund that focuses on investing in U.S.-listed equities of companies within the energy sector. The ETF employs a quantitative momentum-based strategy to select stocks with the potential for strong price appreciation. It emphasizes companies showing positive relative price strength and earnings momentum.

Objective:

The primary investment goal of PIZ is to provide investors with capital appreciation by investing in a portfolio of energy stocks with strong momentum characteristics.

Issuer:

Invesco is the issuer of PIZ. Invesco is a global asset management company with over $1.4 trillion in assets under management and a diverse range of investment products. Invesco has a strong reputation in the market, ranking among the top 10 asset managers globally. The DWA ( Dorsey Wright Associates ) quantitative methodology serves as the foundation for the underlying index tracked by PIZ.

Management: Invesco employs a team of experienced portfolio managers and analysts with expertise in the energy sector and quantitative analysis.

Market Share:

PIZ holds a market share of approximately 1.6% within the energy sector ETF landscape.

Total Net Assets:

PIZ currently has total net assets of approximately $232.80 million.

Moat:

Quantitative Momentum Strategy: PIZ's unique selling proposition lies in its actively managed, quantitative momentum strategy. This approach helps identify companies with strong price and earnings momentum, potentially contributing to outperformance.

Experienced Management: The ETF benefits from Invesco's expertise and experience in managing energy sector investments.

Financial Performance:

Historical Performance: PIZ has delivered a 3-year annualized return of 33.41% and a 5-year annualized return of 17.85%, outperforming the S&P 500 Energy Sector Index over both periods.

Benchmark Comparison: PIZ has consistently outperformed its benchmark, the S&P 500 Energy Sector Index, over various timeframes.

Growth Trajectory:

The energy sector is expected to experience continued growth driven by factors such as rising global energy demand and the transition towards cleaner energy sources. PIZ is well-positioned to capitalize on this growth with its focus on momentum stocks.

Liquidity:

Average Trading Volume: PIZ has an average daily trading volume of approximately 215,000 shares, indicating good liquidity.

Bid-Ask Spread: The typical bid-ask spread for PIZ is around 0.04%, demonstrating tight trading conditions.

Market Dynamics:

Economic Indicators: Strong economic growth and rising energy prices positively impact PIZ.

Sector Growth Prospects: The energy sector is expected to see continued growth driven by increasing energy demand and the transition to cleaner energy sources.

Current Market Conditions: Geopolitical factors, global demand, and supply dynamics significantly influence the energy sector.

Competitors:

PIZ's main competitors include:

• VanEck Energy Income ETF (EINC)
• SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
• Energy Select Sector SPDR Fund (XLE)

Expense Ratio:

PIZ has an expense ratio of 0.61%.

Investment approach and strategy:

Strategy: PIZ does not track a specific index but employs an actively managed, quantitative momentum strategy to select stocks.

Composition: PIZ invests primarily in U.S.-listed equities within the energy sector, with holdings diversified across various sub-industries like oil and gas exploration, production, and equipment & services.

Key Points:

• Actively managed, quantitative momentum strategy focusing on energy stocks.
• Strong historical performance and outperformance against benchmarks.
• Good liquidity and tight bid-ask spreads.
• Well-positioned to benefit from growth within the energy sector.

Risks:

• Volatility: PIZ is subject to higher volatility compared to broad market indices due to its focus on momentum stocks.
• Market Risk: PIZ is exposed to risks associated with the energy sector, including commodity price fluctuations, geopolitical events, and regulatory changes.

Who Should Consider Investing:

PIZ is suitable for investors seeking:

• Capital appreciation potential through exposure to energy stocks.
• Active management and a quantitative approach to stock selection.
• Exposure to the energy sector with a focus on momentum stocks.

Fundamental Rating Based on AI: 8.5/10

PIZ receives a strong AI-based rating of 8.5 out of 10 based on its fundamentals. This rating considers factors such as:

• Strong historical performance and outperformance against benchmarks.
• Experienced management team and robust investment process.
• Good liquidity and tight bid-ask spreads.
• Favorable market dynamics within the energy sector.

PIZ presents a compelling investment opportunity for investors seeking exposure to the energy sector, aiming for capital appreciation through actively managed, momentum-based strategies.

Resources and Disclaimers:

• Invesco DWA Energy Momentum ETF Website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=PIZ
• ETF Database: https://etfdb.com/etf/PIZ/
• Morningstar: https://www.morningstar.com/etfs/arcx/piz/quote
• Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.