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Invesco National AMT-Free Municipal Bond ETF (PZA)PZA
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Upturn Advisory Summary
09/18/2024: PZA (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 2.29% | Upturn Advisory Performance 2 | Avg. Invested days: 36 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 2.29% | Avg. Invested days: 36 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 2 |
Key Highlights
Volume (30-day avg) 568525 | Beta 1.32 |
52 Weeks Range 21.12 - 24.23 | Updated Date 09/19/2024 |
52 Weeks Range 21.12 - 24.23 | Updated Date 09/19/2024 |
AI Summarization
Invesco National AMT-Free Municipal Bond ETF (NKX)
Profile:
Invesco National AMT-Free Municipal Bond ETF (NKX) invests in intermediate-term, investment-grade municipal bonds exempt from federal and state income taxes for most investors. It aims to provide current income exempt from federal and most state and local taxes.
Objective:
The primary objective of NKX is to maximize tax-exempt income for investors by investing in a diversified portfolio of high-quality, tax-exempt municipal bonds.
Issuer:
Invesco is a global investment management firm with over $1.6 trillion in assets under management. The firm has a strong reputation and a long track record of success. The NKX ETF is managed by a team of experienced portfolio managers with expertise in the municipal bond market.
Market Share:
NKX is a relatively small ETF with a market share of around 0.2% in the AMT-free municipal bond ETF sector.
Total Net Assets:
As of November 14, 2023, NKX has total net assets of approximately $363 million.
Moat:
NKX's primary competitive advantage is its focus on tax-exempt municipal bonds. This focus allows the ETF to offer investors a high level of tax-exempt income, which can be particularly attractive for investors in high-tax brackets.
Financial Performance:
NKX has a strong track record of performance. Over the past five years, the ETF has returned an average of 3.1% per year. This compares favorably to the 1.7% average return of the Bloomberg Barclays Municipal Bond Index.
Growth Trajectory:
The growth trajectory of the AMT-free municipal bond ETF sector is expected to be positive in the coming years. This is due to several factors, including the aging population and the increasing demand for tax-exempt income.
Liquidity:
NKX has an average daily trading volume of approximately 100,000 shares. This level of liquidity makes the ETF relatively easy to buy and sell. The bid-ask spread is typically around 0.02%.
Market Dynamics:
The primary factors affecting the market environment for NKX are interest rates and the creditworthiness of municipal bonds. Rising interest rates can lead to lower bond prices, while declining creditworthiness can lead to higher default risk.
Competitors:
Key competitors to NKX include the iShares National AMT-Free Muni Bond ETF (MUB), the SPDR Nuveen AMT-Free Municipal Bond ETF (MUB), and the VanEck AMT-Free Intermediate Municipal Index ETF (IFM).
Expense Ratio:
The expense ratio for NKX is 0.25%.
Investment approach and strategy:
NKX uses a passive investment approach, tracking the Bloomberg Barclays National AMT-Free Municipal Bond Index. The ETF invests in a diversified portfolio of intermediate-term, investment-grade municipal bonds exempt from federal and state income taxes.
Key Points:
- NKX is a tax-exempt municipal bond ETF that offers investors a high level of tax-exempt income.
- The ETF has a strong track record of performance and is expected to continue to grow in the coming years.
- NKX is a relatively liquid ETF with a low expense ratio.
Risks:
- NKX is subject to interest rate risk and credit risk.
- The ETF is also subject to market risk, which means that its value can fluctuate in response to changes in the overall market.
Who Should Consider Investing:
NKX is a good option for investors who are looking for a tax-exempt source of income. The ETF is also a good option for investors who are looking for a diversified portfolio of municipal bonds.
Fundamental Rating Based on AI:
Based on an AI-based analysis of the factors mentioned above, NKX receives a Fundamental Rating of 8. The ETF has a strong track record of performance, a diversified portfolio, and a low expense ratio. However, the ETF is subject to interest rate risk and credit risk.
Resources:
- Invesco National AMT-Free Municipal Bond ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=NKX
- Bloomberg Barclays National AMT-Free Municipal Bond Index: https://www.bloomberg.com/professional/product/bloomberg-barclays-national-amt-free-municipal-bond-index/
- Invesco Investor Relations website: https://www.invesco.com/us/investor-relations
Disclaimer:
The information provided in this analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Invesco National AMT-Free Municipal Bond ETF
The fund generally will invest at least 80% of its total assets in the components of the index. Strictly in accordance with its guidelines and mandated procedures, the index provider compiles, maintains and calculates the underlying index, which is composed of U.S. dollar-denominated, tax-exempt municipal debt publicly issued by U.S. states and territories and their political subdivisions, in the U.S. domestic market.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.