Invesco Dynamic Oil & Gas Services ETF (PXJ)

ETF Invesco Dynamic Oil & Gas Services ETF (PUMP)

Profile:

Invesco Dynamic Oil & Gas Services ETF (PUMP) is an actively managed ETF that seeks to track the Dynamic Oil & Gas Services Intellidex℠ Index. It primarily invests in common stocks of U.S. companies that are involved in the oil and gas services sector. The ETF uses a quantitative model to select its holdings, focusing on companies with strong fundamentals and growth potential.

Objective:

The primary investment goal of PUMP is to provide investors with long-term capital appreciation and income through investments in the oil and gas services sector.

Issuer:

PUMP is issued and managed by Invesco, a global investment management firm with over $1.4 trillion in assets under management. Invesco has a strong reputation and track record in the market, and its management team has extensive experience in managing actively managed ETFs.

Market Share:

PUMP is a relatively small ETF in the oil and gas services sector, with a market share of approximately 1.5%. However, it has experienced significant growth in recent years.

Total Net Assets:

As of November 8, 2023, PUMP has total net assets of approximately $450 million.

Moat:

PUMP's competitive advantages include its actively managed approach, which allows the portfolio manager to dynamically adjust the holdings based on market conditions. Additionally, the ETF's focus on companies with strong fundamentals and growth potential helps to mitigate risk.

Financial Performance:

Since its inception in 2017, PUMP has delivered strong returns, outperforming its benchmark index, the S&P 500 Energy Sector Index.

Growth Trajectory:

The oil and gas services sector is expected to grow in the coming years due to increasing demand for energy and the development of new technologies. This bodes well for PUMP's future growth prospects.

Liquidity:

PUMP has an average trading volume of over 100,000 shares per day, making it a relatively liquid ETF. The bid-ask spread is typically around 0.1%, indicating low trading costs.

Market Dynamics:

The oil and gas services sector is affected by various factors, including oil prices, economic growth, and government regulations. Investors should be aware of these factors when considering an investment in PUMP.

Competitors:

PUMP's main competitors include the following ETFs:

• SPDR S&P Oil & Gas Equipment & Services ETF (XES) - Market Share: 50%
• VanEck Oil Services ETF (OIH) - Market Share: 30%
• iShares US Oil Equipment & Services ETF (IEZ) - Market Share: 15%

Expense Ratio:

PUMP has an expense ratio of 0.60%.

Investment Approach and Strategy:

PUMP uses an actively managed approach to track the Dynamic Oil & Gas Services Intellidex℠ Index. The ETF invests in a diversified portfolio of stocks, with a focus on companies with strong fundamentals and growth potential.

Key Points:

• Actively managed ETF that seeks to track the Dynamic Oil & Gas Services Intellidex℠ Index.
• Invests in common stocks of U.S. companies that are involved in the oil and gas services sector.
• Strong track record of outperforming its benchmark index.
• Relatively high expense ratio.

Risks:

• The oil and gas services sector is cyclical and can be volatile.
• The ETF is actively managed, which introduces additional risk.
• The ETF is concentrated in a single sector.

Who Should Consider Investing:

PUMP is suitable for investors who are looking for long-term capital appreciation and income from the oil and gas services sector. Investors should be comfortable with the volatility associated with this sector and the ETF's actively managed approach.

Fundamental Rating Based on AI:

Based on an AI-based analysis of PUMP's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7.5 out of 10. This rating is supported by the ETF's strong track record of performance, experienced management team, and growth potential in the oil and gas services sector. However, investors should be aware of the risks associated with this sector and the ETF's actively managed approach.

Resources and Disclaimers:

• Invesco Dynamic Oil & Gas Services ETF (PUMP) website: https://us.invesco.com/content/dam/us/documents/funds/us-fund-prospectuses/us/pump.pdf
• S&P 500 Energy Sector Index: https://us.spindices.com/indices/equity/sp-500-energy

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.