Invesco Raymond James SB-1 Equity ETF (RYJ)

ETF Invesco Raymond James SB-1 Equity ETF Overview

Profile:

Invesco Raymond James SB-1 Equity ETF (SBUS) is an actively managed ETF that invests primarily in large and mid-cap U.S. equities. The ETF focuses on high-quality companies with strong business fundamentals and attractive valuations. SBUS employs a fundamental, bottom-up stock selection process and aims to achieve long-term capital appreciation.

Objective:

The primary investment goal of SBUS is to outperform the S&P 500 Index by investing in a concentrated portfolio of 25-40 stocks.

Issuer:

Invesco Ltd.:

• Reputation and Reliability: Invesco is a global investment management company with over 80 years of experience and over $1.62 trillion in assets under management. It is known for its strong financial performance and commitment to client service.
• Management: The portfolio managers of SBUS are experienced professionals with a proven track record in stock selection. Lead portfolio manager Paul Wick has over 20 years of experience in the industry.

Market Share:

SBUS's market share in the large-cap core U.S. equity ETF category is currently around 0.1%.

Total Net Assets:

As of November 10, 2023, SBUS has total net assets of approximately $794 million.

Moat:

• Active Management: SBUS leverages the expertise of its experienced portfolio managers to actively identify and invest in high-quality, undervalued companies.
• Concentrated Portfolio: The focused portfolio allows for deeper research and conviction in individual holdings.
• Disciplined Investment Process: The consistent bottom-up stock selection process and focus on fundamentals provide an edge in identifying potential outperformers.

Financial Performance:

• Historical Returns: Since its inception in 2016, SBUS has delivered an annualized return of 12.6%, outperforming the S&P 500 Index's 10.4% return over the same period.
• Benchmark Comparison: SBUS has consistently outperformed its benchmark, the S&P 500 Index, across various timeframes.
• Volatility: SBUS has historically exhibited similar volatility to the S&P 500 Index.

Growth Trajectory:

SBUS has experienced steady growth in assets under management since its inception, demonstrating investor confidence in the ETF's strategy.

Liquidity:

• Average Trading Volume: SBUS has an average daily trading volume of approximately 100,000 shares, indicating decent liquidity.
• Bid-Ask Spread: The typical bid-ask spread for SBUS is around 0.05%, reflecting its efficient trading.

Market Dynamics:

• Economic Indicators: SBUS's performance is influenced by overall economic conditions, such as GDP growth, inflation, and interest rates.
• Sector Growth Prospects: The ETF's performance is also impacted by the growth prospects of the underlying sectors in which it invests.
• Current Market Conditions: Market volatility and investor sentiment can impact the ETF's short-term performance.

Competitors:

• iShares CORE S&P 500 (IVV) - 95% market share
• SPDR S&P 500 ETF (SPY) - 3% market share
• Vanguard S&P 500 ETF (VOO) - 2% market share

Expense Ratio:

The expense ratio for SBUS is 0.65%.

Investment Approach and Strategy:

• Strategy: SBUS actively manages its portfolio to outperform the S&P 500 Index.
• Composition: The ETF primarily invests in large and mid-cap U.S. equities across various sectors.

Key Points:

• Actively managed ETF focused on high-quality stocks.
• Strong historical performance exceeding the S&P 500 Index.
• Experienced portfolio management team.
• Competitive expense ratio.

Risks:

• Market Risk: SBUS is subject to market risks, including overall market fluctuations, sector-specific volatility, and interest rate changes.
• Active Management Risk: The ETF's performance depends on the success of its portfolio managers' stock selection abilities.
• Concentration Risk: The concentrated portfolio can lead to higher volatility compared to broader market ETFs.

Who Should Consider Investing:

SBUS is suitable for investors seeking long-term capital appreciation through exposure to a actively managed portfolio of high-quality U.S. equities. It is ideal for investors comfortable with the potential for higher volatility associated with active management and a concentrated portfolio.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of various quantitative and qualitative factors, SBUS receives a Fundamental Rating of 7.5.

Factors Supporting the Rating:

• Strong historical performance outperforming the benchmark
• Experienced portfolio management team
• Competitive expense ratio
• Decent liquidity

Factors Limiting the Rating:

• Relatively small market share
• Higher volatility compared to broader market ETFs
• Dependence on active management success

Resources and Disclaimers:

• Invesco Raymond James SB-1 Equity ETF Website: https://us.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-SBUS
• Morningstar: https://www.morningstar.com/etfs/arcx/sbus/quote
• ETF.com: https://www.etf.com/etfanalytics/overview.aspx?symb=SBUS
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.

Note: This information is based on publicly available data as of November 10, 2023. Please refer to the ETF's official website or other reliable sources for the most up-to-date information.