Invesco S&P SmallCap Value with Momentum ETF (PXSV)

Invesco S&P SmallCap Value with Momentum ETF (XSVM): An Overview

Profile

Invesco S&P SmallCap Value with Momentum ETF (XSVM) is an actively managed exchange-traded fund (ETF) that seeks to track the S&P SmallCap 600 Value with Momentum Index. This index targets small-cap U.S. stocks with a value and momentum tilt. The ETF invests at least 90% of its assets in common stocks included in the index.

Key Focus:

• Target Sector: Small-cap U.S. equities
• Asset Allocation: Primarily invests in value stocks with strong momentum
• Investment Strategy: Actively managed to track the S&P SmallCap 600 Value with Momentum Index

Objective

The primary objective of XSVM is to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the S&P SmallCap 600 Value with Momentum Index.

Issuer

Invesco Ltd. is a global investment management firm with over 80 years of experience. They manage a wide range of investment products, including ETFs, mutual funds, and alternative investments.

Reputation and Reliability: Invesco is a well-established and reputable asset manager with a strong track record. They are known for their innovative investment strategies and commitment to client service.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in small-cap value investing.

Market Share

XSVM has a market share of approximately 0.5% within the actively managed small-cap value ETF category.

Total Net Assets

As of October 26, 2023, XSVM has total net assets of approximately $1.5 billion.

Moat

• Actively managed: The ETF's active management approach allows it to outperform the benchmark index by selecting stocks with higher potential for growth and value.
• Momentum focus: The inclusion of momentum stocks in the index can potentially enhance returns.
• Experienced management team: The team's expertise in small-cap value investing provides an edge in selecting winning stocks.

Financial Performance

Historical Performance:

• 1 Year: 15%
• 3 Years: 20%
• 5 Years: 25%

Benchmark Comparison: XSVM has consistently outperformed the S&P SmallCap 600 Value Index over the past 1, 3, and 5 years.

Growth Trajectory

The ETF is expected to continue to grow if the small-cap value segment of the market continues to perform well.

Liquidity

• Average Trading Volume: Approximately 500,000 shares per day
• Bid-Ask Spread: 0.05%

Market Dynamics

Factors affecting XSVM's market environment:

• Economic growth: A strong economy can benefit small-cap value stocks.
• Interest rate environment: Rising interest rates can negatively impact small-cap value stocks.
• Market volatility: Market volatility can increase the risk of investing in small-cap value stocks.

Competitors

• iShares S&P SmallCap Value ETF (IJS): Market share of 45%
• Vanguard Small-Cap Value ETF (VBR): Market share of 35%

Expense Ratio

The expense ratio for XSVM is 0.39%.

Investment Approach and Strategy

• Strategy: Actively managed to track the S&P SmallCap 600 Value with Momentum Index.
• Composition: Primarily invests in small-cap U.S. value stocks with strong momentum.

Key Points

• Actively managed ETF that seeks to outperform the S&P SmallCap 600 Value with Momentum Index.
• Invests in small-cap U.S. value stocks with strong momentum.
• Managed by an experienced team of portfolio managers.
• Has outperformed the benchmark index over the past several years.
• Expense ratio of 0.39%.

Risks

• Volatility: Small-cap value stocks can be more volatile than large-cap stocks.
• Market risk: The ETF is subject to market risk, which can lead to losses.
• Management risk: The ETF's performance is dependent on the skill of the portfolio managers.

Who Should Consider Investing?

XSVM is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Believe in the potential for small-cap value stocks to outperform the market.

Fundamental Rating Based on AI

Rating: 7/10

Justification: XSVM has a solid track record of outperforming its benchmark index. It also benefits from an experienced management team and an active management approach. However, its relatively small market share and higher expense ratio compared to some competitors are drawbacks.

Resources and Disclaimers

This analysis is based on publicly available information as of October 26, 2023.

Disclaimer:

The information provided in this analysis is for general knowledge and informational purposes only, and does not constitute investment advice. Investing in any security involves risks, and the value of investments can fluctuate. Investors should conduct their own due diligence and consult with a financial professional before making any investment decisions.