Invesco Dynamic Oil & Gas Services ETF (PXJ)

Invesco Dynamic Oil & Gas Services ETF (PXJ): A Summary

Profile:

The Invesco Dynamic Oil & Gas Services ETF (PXJ) is an actively managed ETF that invests in U.S. companies engaged in equipment and services for the oil and gas industry. It seeks to track the Dynamic Oil & Gas Services Intellidex℠ Index. This index selects companies based on a combination of factors including fundamental analysis and growth potential. PXJ has an expense ratio of 0.64%.

Objective:

The primary investment goal of PXJ is to provide long-term capital appreciation through investments in the oil and gas equipment and services sector.

Issuer:

Invesco Ltd. (IVZ)

Reputation and Reliability:

Invesco is a global investment management firm with over $1.4 trillion in assets under management. The company has a strong reputation for providing high-quality investment products and services.

Management:

The portfolio management team for PXJ is led by Keith Hembre, who has over 20 years of experience in the investment industry.

Market Share:

PXJ is the second-largest ETF in the oil and gas equipment and services sector, with over $1.1 billion in assets under management.

Total Net Assets:

As of January 31, 2023, PXJ had total net assets of $1.13 billion.

Moat:

PXJ's competitive advantage lies in its active management approach and focus on the oil and gas equipment and services sector. The ETF's portfolio managers have a strong track record of identifying high-growth companies in this sector.

Financial Performance:

Over the past 5 years, PXJ has returned an average of 20.2% per year, outperforming the S&P 500 Index by an average of 8.2% per year.

Benchmark Comparison:

PXJ has outperformed its benchmark index, the S&P Oil & Gas Equipment & Services Select Industry Index, by an average of 2.4% per year over the past 5 years.

Growth Trajectory:

The oil and gas equipment and services sector is expected to grow at a healthy pace in the coming years. This is due to rising demand for oil and gas, as well as increased investment in exploration and production activities.

Liquidity:

PXJ has an average daily trading volume of over 200,000 shares. This makes it a highly liquid ETF, meaning that investors can easily buy or sell shares without impacting the price.

Bid-Ask Spread:

PXJ's bid-ask spread is typically around 0.05%, which is relatively low for an actively managed ETF.

Market Dynamics:

The oil and gas equipment and services sector is affected by a number of factors, including oil prices, economic growth, and government regulations.

Competitors:

PXJ's main competitors include the VanEck Oil Services ETF (OIH) and the SPDR S&P Oil & Gas Equipment & Services ETF (XES).

Expense Ratio:

PXJ has an expense ratio of 0.64%.

Investment Approach and Strategy:

PXJ is an actively managed ETF that invests in a portfolio of stocks selected by the portfolio manager based on their growth potential and fundamental analysis.

Key Points:

• Focuses on oil and gas equipment and services companies
• Actively managed
• Strong track record of performance
• High liquidity

Risks:

• Volatility of the oil and gas sector
• Concentration in a single sector
• Expense ratio

Who Should Consider Investing:

PXJ is a suitable investment for investors who are looking for long-term capital appreciation and are comfortable with the volatility of the oil and gas sector.

Fundamental Rating Based on AI:

Based on an AI analysis, PXJ receives a fundamental rating of 7 out of 10. This rating is based on the ETF's strong track record of performance, its focus on a growing sector, and its experienced management team. However, investors should be aware of the risks associated with the ETF, such as its volatility and concentration in a single sector.

Resources and Disclaimers:

• Invesco Dynamic Oil & Gas Services ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=PXJ
• Morningstar: https://www.morningstar.com/etfs/arcx/pxj/quote
• Zacks: https://www.zacks.com/funds/etf/PXJ/performance

Disclaimer:

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