Invesco S&P MidCap Value with Momentum ETF (PXMV)

Invesco S&P MidCap Value with Momentum ETF (SPMV) Overview

Profile

Invesco S&P MidCap Value with Momentum ETF (SPMV) seeks to track the performance of the S&P MidCap 400 Value with Momentum Index. This index focuses on mid-cap value stocks within the S&P 400 Index that exhibit strong momentum characteristics. It follows a passively managed investment approach and offers investors exposure to a diversified portfolio of US mid-cap value stocks with a growth potential.

Objective

The primary objective of Invesco S&P MidCap Value with Momentum ETF is to provide long-term capital appreciation through investment in mid-cap value stocks with positive momentum.

Issuer

Invesco Ltd. (IVZ)

• Reputation and Reliability: Invesco is a global asset management company with over 80 years of experience and a strong track record in the industry. It manages over $1.4 trillion in assets across various asset classes and investment strategies.

• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative and index-based investing.

Market Share

Invesco S&P MidCap Value with Momentum ETF has a market share of approximately 0.4% in the mid-cap value ETF category.

Total Net Assets

As of November 3, 2023, the total net assets of Invesco S&P MidCap Value with Momentum ETF are approximately $440 million.

Moat

• Unique Strategy: Invesco S&P MidCap Value with Momentum ETF combines a value investing approach with a momentum factor, potentially offering investors a distinct advantage in identifying undervalued companies with strong growth potential.

• Experienced Management: The ETF benefits from the expertise of Invesco's experienced portfolio management team, which applies a robust quantitative and index-based approach to stock selection.

Financial Performance

• Historical Performance: Since its inception in 2013, Invesco S&P MidCap Value with Momentum ETF has generated an annualized return of approximately 11.8%.

• Benchmark Comparison: Compared to its benchmark index, S&P MidCap 400 Value with Momentum Index, the ETF has outperformed by an average of 0.5% annually.

Growth Trajectory

Invesco S&P MidCap Value with Momentum ETF has experienced consistent growth since its inception, with an upward trend in assets under management and trading volume. The increasing popularity of factor investing strategies and the ETF's strong performance contribute to this growth.

Liquidity

• Average Trading Volume: The ETF has an average daily trading volume of around 30,000 shares.

• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, indicating a relatively low cost of trading the ETF.

Market Dynamics

• Economic Indicators: Strong economic growth and stable interest rates tend to favor mid-cap value stocks, potentially benefiting the ETF.

• Sector Growth Prospects: The performance of the ETF is influenced by the growth prospects of the mid-cap value sector, which is currently experiencing positive momentum.

• Market Conditions: Market volatility and overall market sentiment can impact the ETF's performance.

Competitors

• iShares S&P Mid-Cap 400 Value ETF (IJJ) with a market share of 75.5%
• Vanguard Mid-Cap Value ETF (VOE) with a market share of 18.9%

Expense Ratio

The expense ratio of Invesco S&P MidCap Value with Momentum ETF is 0.35%.

Investment Approach and Strategy

• Strategy: The ETF passively tracks the S&P MidCap 400 Value with Momentum Index, replicating its holdings and performance.

• Composition: The ETF invests in a diversified portfolio of mid-cap value stocks with positive momentum characteristics, spanning various industries within the S&P 400 Index.

Key Points

• Invesco S&P MidCap Value with Momentum ETF offers exposure to a diversified portfolio of mid-cap value stocks with a growth potential.
• The ETF employs a unique strategy combining value investing with a momentum factor.
• It has a strong track record of outperforming its benchmark index.
• The ETF benefits from the expertise of Invesco's experienced portfolio management team.
• Its relatively low expense ratio and moderate trading volume make it an attractive option for investors seeking long-term capital appreciation.

Risks

• Volatility: The ETF's value can fluctuate significantly due to market volatility and changes in the underlying assets' performance.
• Market Risk: The ETF is subject to the risks associated with the mid-cap value sector, such as changes in economic conditions and industry-specific events.
• Tracking Error: The ETF's performance may deviate from its benchmark index due to tracking error.

Who Should Consider Investing

Invesco S&P MidCap Value with Momentum ETF is suitable for investors seeking:

• Long-term capital appreciation through investment in mid-cap value stocks with strong growth potential.
• Diversification across various industries within the mid-cap value segment.
• A passively managed, low-cost ETF with a proven track record.

Fundamental Rating Based on AI

Based on an AI-based rating system, Invesco S&P MidCap Value with Momentum ETF receives a 7.5 out of 10. This rating is supported by the ETF's strong historical performance, experienced management team, unique investment strategy, and competitive expense ratio. However, investors should acknowledge the risks associated with market volatility and the mid-cap value sector.

Resources and Disclaimers

• Invesco S&P MidCap Value with Momentum ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=SPMV
• S&P Dow Jones Indices: https://us.spindices.com/indices/equity/sp-midcap-400-value-momentum-index
• Morningstar: https://www.morningstar.com/etfs/arcx/spmv/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.