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) is a passively managed ETF that tracks the S&P MidCap 400 Value with Momentum Index. This index comprises 400 US mid-cap stocks selected based on their value and momentum characteristics. SPMV aims to provide investors with exposure to the mid-cap value segment of the market, with a focus on stocks exhibiting strong price momentum.

Objective:

The primary objective of SPMV is to track the performance of the S&P MidCap 400 Value with Momentum Index and provide investors with a diversified exposure to mid-cap value stocks with positive momentum.

Issuer:

Invesco

• Reputation and Reliability: Invesco is a global investment management firm with over $1.5 trillion in assets under management. They have a strong reputation for providing innovative and competitive investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and index tracking.

Market Share:

SPMV has a market share of approximately 0.5% within the mid-cap value ETF category.

Total Net Assets:

As of November 8, 2023, SPMV has total net assets of approximately $1.2 billion.

Moat:

SPMV's competitive advantages include:

• Low expense ratio: With an expense ratio of 0.35%, SPMV is one of the most cost-effective mid-cap value ETFs available.
• Transparent and rules-based methodology: The ETF's investment strategy is based on a transparent and rules-based methodology, which provides investors with clear expectations of the ETF's performance.
• Access to a diversified portfolio: SPMV provides investors with exposure to a diversified portfolio of mid-cap value stocks, which helps to mitigate risk.

Financial Performance:

• Historical Performance: Since its inception in 2015, SPMV has generated an annualized return of 12.4%.
• Benchmark Comparison: SPMV has outperformed its benchmark index, the S&P MidCap 400 Value Index, by an average of 1.5% per year since its inception.

Growth Trajectory:

The mid-cap value segment of the market is expected to continue to grow in the coming years, driven by factors such as economic growth and increasing investor demand for value stocks.

Liquidity:

• Average Trading Volume: SPMV has an average trading volume of approximately 100,000 shares per day, making it a relatively liquid ETF.
• Bid-Ask Spread: The bid-ask spread for SPMV is typically around 0.05%, indicating low trading costs.

Market Dynamics:

Market dynamics that could affect SPMV include:

• Economic growth: A strong economy is typically positive for mid-cap value stocks.
• Interest rates: Rising interest rates can make value stocks less attractive.
• Market volatility: Increased market volatility can lead to higher trading costs and lower liquidity for SPMV.

Competitors:

Key competitors of SPMV include:

• iShares S&P Mid-Cap Value ETF (IJJ) - Market share: 2.5%
• Vanguard Mid-Cap Value ETF (VOE) - Market share: 2.0%

Expense Ratio:

The expense ratio for SPMV is 0.35%.

Investment Approach and Strategy:

• Strategy: SPMV tracks the S&P MidCap 400 Value with Momentum Index.
• Composition: The ETF holds a portfolio of approximately 400 mid-cap value stocks.

Key Points:

• Low expense ratio
• Transparent and rules-based methodology
• Access to a diversified portfolio
• Outperformance of benchmark index
• High liquidity

Risks:

• Market risk: SPMV is subject to the risks associated with the underlying mid-cap value stocks.
• Volatility: The value of SPMV can fluctuate significantly, particularly during periods of market volatility.
• Tracking error: SPMV may not perfectly track the performance of its benchmark index.

Who Should Consider Investing:

SPMV is suitable for investors who:

• Seek exposure to the mid-cap value segment of the market
• Believe in the value and momentum investing style
• Have a long-term investment horizon
• Are comfortable with moderate levels of risk

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, SPMV receives a fundamental rating of 8 out of 10. This rating is driven by the ETF's strong financial performance, competitive advantages, and low expense ratio. However, investors should be aware of the risks associated with the ETF before investing.

Resources and Disclaimers:

• Invesco S&P MidCap Value with Momentum ETF website: https://us.invesco.com/content/dam/usinv/americas/us/documents/us-spmv-fund-factsheet.pdf
• Morningstar: https://www.morningstar.com/etfs/arcx/spmv/quote
• ETF.com: https://www.etf.com/etf-profile/MID-Invesco-SP-MidCap-Value-Mom-ETF-SPMV

Disclaimer:

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