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

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

Profile:

Invesco S&P MidCap Value with Momentum ETF (SPMV) is a passively managed exchange-traded fund (ETF) that tracks the S&P MidCap 400 Value Momentum Index. This index consists of 200 mid-cap stocks (market capitalization between $1 billion and $10 billion) selected based on their value and momentum characteristics. SPMV offers investors exposure to mid-cap value stocks with a potential for positive momentum.

Objective:

The primary investment goal of SPMV is to provide investment results that, before expenses, generally correspond to the total return performance of the S&P MidCap 400 Value Momentum Index.

Issuer:

Invesco is a global asset management company with over $1.64 trillion in assets under management as of March 31, 2023. Invesco is known for its strong reputation and track record in the ETF industry.

• Reputation and Reliability: Invesco is a well-established and reputable asset management firm with a long history of providing investment solutions. It has received numerous awards and accolades for its products and services.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative and index-based investing.

Market Share:

SPMV holds a market share of approximately 0.3% in the mid-cap value ETF space.

Total Net Assets:

As of November 8, 2023, SPMV has approximately $4.83 billion in total net assets.

Moat:

SPMV's competitive advantages include:

• Low Expense Ratio: The ETF has an expense ratio of 0.35%, which is lower than most other mid-cap value ETFs.
• Diversification: The ETF provides exposure to a diversified portfolio of 200 mid-cap value stocks, reducing company-specific risk.
• Tax Efficiency: The ETF is structured to be tax-efficient, which can be beneficial for investors in taxable accounts.

Financial Performance:

SPMV has historically outperformed the S&P MidCap 400 Index, with an annualized return of 14.4% compared to 11.8% for the S&P MidCap 400 Index over the past five years.

Growth Trajectory:

The mid-cap value segment has historically exhibited strong growth potential, and SPMV is well-positioned to benefit from this trend.

Liquidity:

• Average Trading Volume: SPMV has an average daily trading volume of over 1.5 million shares, making it a highly liquid ETF.
• Bid-Ask Spread: The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting SPMV's market environment include:

• Economic Growth: A strong economy can boost corporate earnings and drive mid-cap value stocks higher.
• Interest Rates: Rising interest rates can make value stocks less attractive compared to growth stocks.
• Market Sentiment: Investor sentiment can significantly impact the performance of mid-cap value stocks.

Competitors:

Some of SPMV's key competitors include:

• iShares S&P Mid-Cap Value ETF (IJV): Market share of 4.8%
• Vanguard Mid-Cap Value ETF (VOE): Market share of 4.4%
• Schwab Mid-Cap Value ETF (MDYV): Market share of 1.2%

Expense Ratio:

SPMV has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: SPMV tracks the S&P MidCap 400 Value Momentum Index, which selects stocks based on a combination of value and momentum factors.
• Composition: The ETF holds a diversified portfolio of approximately 200 mid-cap value stocks across various sectors.

Key Points:

• Low expense ratio
• Tax efficiency
• Momentum-driven strategy
• Strong historical performance

Risks:

• Market risk: The value of SPMV's holdings can fluctuate with market conditions.
• Volatility: Mid-cap value stocks can be more volatile than large-cap stocks.
• Style risk: Value stocks may underperform growth stocks in certain market environments.

Who Should Consider Investing:

SPMV is suitable for investors seeking:

• Exposure to mid-cap value stocks
• Potential for momentum-driven returns
• Tax-efficient investment

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, SPMV receives a 7/10 rating. The ETF benefits from its low expense ratio, tax efficiency, and strong historical performance. However, investors should be aware of the potential for market and style risks.

Resources:

• Invesco S&P MidCap Value with Momentum ETF: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=SPMV
• S&P MidCap 400 Value Momentum Index: https://www.spglobal.com/spdji/en/indices/equity/sp-midcap-400-value-momentum-index/

Disclaimer:

This information should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.