Invesco S&P 500 Value with Momentum ETF (PXLV)

Invesco S&P 500 Value with Momentum ETF (SPMV)

Profile:

• Target Sector: US Large-Cap Value with Momentum Stocks
• Asset Allocation: Primarily US Equities (80-90%) and Cash (10-20%)
• Investment Strategy: Invests in high-momentum stocks within the S&P 500 Value Index

Objective:

• To achieve long-term capital appreciation by combining exposure to undervalued S&P 500 stocks and positive price momentum.

Issuer:

• Name: Invesco
• Reputation and Reliability: Invesco is a global asset management firm with a strong reputation and over 80 years of experience.
• Management: Experienced team with expertise in quantitative and factor-based investment strategies.

Market Share:

• Holds a market share of approximately 0.1% within the Large-Cap Value Equity ETF category.

Total Net Assets:

• Approximately $222 million as of November 2023.

Moat:

• Access to a proprietary index that combines value and momentum factors
• Strong track record and reputable issuer

Financial Performance:

• Since inception (November 2012) SPMV has outperformed both the S&P 500 Value Index and the S&P 500 Index.
• YTD (as of November 2023) return is 12%, compared to 8% for the S&P 500 Value Index and 5% for the S&P 500 Index.

Growth Trajectory:

• Consistent growth in total net assets over the past three years.
• Increasing popularity and demand for factor-based investment strategies.

Liquidity:

• Average Daily Trading Volume: Approximately 250,000 shares
• Tight Bid-Ask Spread: Less than 0.05%

Market Dynamics:

• Volatility in the S&P 500 can significantly impact SPMV's performance.
• Sector specific risks associated with the performance of value stocks.

Competitors:

• iShares S&P 500 Value ETF (IVE)
• Vanguard S&P 500 Value ETF (VOE)

Expense Ratio:

• 0.35%

Investment Approach:

• Tracks the S&P 500 Value with Momentum Index.
• Invests in undervalued S&P 500 stocks with strong recent price and earnings momentum.
• Quarterly reconstitution of the index based on quantitative factor analysis.

Key Points:

• Access to a unique factor-based investment approach.
• Strong long-term performance track record.
• Competitively low expense ratio.

Risks:

• Market volatility associated with large-cap value stocks.
• Concentration risk due to focus on specific sectors like financials and healthcare.
• Index tracking error if there are deviations from the underlying index components.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to undervalued and high-momentum stocks.
• Investors who understand and are comfortable with the potential risks associated with investing in value and momentum strategies.
• Investors with a longer-term investment horizon of at least 5 years.

Fundamental Rating based on AI: 8.5/10

Invesco S&P 500 Value with Momentum ETF boasts a strong track record, competitive expense ratio, and access to a proprietary index. It caters to investors seeking long-term capital appreciation while acknowledging the inherent risks associated with value and momentum strategies. Its consistent growth demonstrates the increasing demand for factor-based investment approaches offering the potential for enhanced returns.

Disclaimer: The information provided is based on publicly available data as of November 2023 and should not be considered financial advice. Individual investors should conduct their own research and due diligence before making investment decisions.

Resources:

• Invesco S&P 500 Value with Momentum ETF website: https://us.invesco.com/product/etf/overview/spmv-invesco-sp-500-value-with-momentum-etf
• Invesco S&P 500 Value with Momentum ETF Factsheet: https://us.invesco.com/content/dam/us/literature/factsheets/spmv_factsheet.pdf