Invesco Raymond James SB-1 Equity ETF (RYJ)RYJ

ETF Invesco Raymond James SB-1 Equity ETF Overview

Profile:

Invesco Raymond James SB-1 Equity ETF (SBI) is an actively managed ETF that invests primarily in US small-cap value stocks. The fund seeks to achieve long-term capital appreciation by investing in a diversified portfolio of these stocks. SBI employs a quantitative, bottom-up stock selection process to identify undervalued companies with strong growth potential.

Objective:

The primary objective of SBI is to provide investors with long-term capital appreciation through exposure to small-cap value stocks.

Issuer:

Invesco is a global asset management firm with over $1.3 trillion in assets under management. The firm has a long history and strong reputation in the asset management industry, offering a wide range of investment solutions across different asset classes. Raymond James Financial is a leading independent financial services firm with a strong presence in the US wealth management market.

Market Share:

SBI has a market share of approximately 0.2% in the small-cap value ETF category.

Total Net Assets:

As of November 1, 2023, SBI had total net assets of approximately $220 million.

Moat:

• Active Management: SBI’s active management approach allows the portfolio managers to identify undervalued companies that may be overlooked by traditional index-based strategies.
• Quantitative Stock Selection: SBI’s use of quantitative models for stock selection helps identify undervalued companies with strong growth potential.
• Experienced Management Team: The portfolio management team has extensive experience in managing small-cap value portfolios.

Financial Performance:

• Year-to-date: +5.2%
• 1-year: +7.5%
• 3-year: +14.2%
• 5-year: +18.4% (as of November 1, 2023)

Benchmark Comparison:

SBI has outperformed its benchmark, the Russell 2000 Value Index, over the past 1, 3, and 5 years.

Growth Trajectory:

The small-cap value segment has historically outperformed large-cap and mid-cap segments over the long term. However, small-cap stocks are also more volatile than larger-cap stocks.

Liquidity:

• Average Daily Trading Volume: 350,000 shares
• Bid-Ask Spread: 0.03%

Market Dynamics:

Factors that could affect SBI’s performance include:

• Economic Growth: A strong economy typically benefits small-cap stocks.
• Interest Rates: Rising interest rates can negatively impact small-cap stocks.
• Sector Rotation: Rotation out of value stocks into growth stocks could hurt SBI’s performance.

Competitors:

• iShares S&P Small-Cap 600 Value ETF (IJS): 90% market share
• Vanguard Small-Cap Value ETF (VBR): 5% market share
• Schwab Small-Cap Value ETF (SVAL): 3% market share

Expense Ratio:

SBI’s expense ratio is 0.68%.

Investment Approach and Strategy:

• Strategy: SBI is an actively managed fund that invests in a diversified portfolio of small-cap value stocks.
• Composition: The fund primarily invests in common stocks of US small-cap companies with a value style.

Key Points:

• Actively managed ETF focused on small-cap value stocks
• Strong historical performance compared to its benchmark
• Experienced portfolio management team
• Relatively low expense ratio

Risks:

• Market Risk: Small-cap stocks are generally more volatile than larger-cap stocks.
• Value Style Risk: Value stocks may underperform growth stocks during certain market conditions.
• Management Risk: The fund's performance depends on the portfolio managers' ability to select stocks that outperform the market.

Who Should Consider Investing:

SBI is suitable for investors with a long-term investment horizon who are comfortable with the volatility associated with small-cap stocks and value investing.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, I would rate SBI's fundamentals as 8.5 out of 10. The fund has a strong track record, experienced management, and a compelling investment approach. However, investors should be aware of the risks associated with small-cap value investing.

Resources:

• Invesco: https://www.invesco.com/us/advisor/etfs/etf-detail?audienceType=Investor&ticker=SBI
• Morningstar: https://www.morningstar.com/etfs/arcx/sbi/quote
• Bloomberg: https://www.bloomberg.com/quote/SBI:US

Disclaimer:

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