Invesco Exchange-Traded Fund Trust - Invesco Raymond James SB-1 Equity ETF (UPGD)

ETF Invesco Exchange-Traded Fund Trust - Invesco Raymond James SB-1 Equity ETF (SBUS) Overview

Profile:

The Invesco Raymond James SB-1 Equity ETF (SBUS) invests primarily in U.S. small-cap companies with strong earnings power and growth potential. The fund follows the S&P SmallCap 600 Growth Index, targeting companies with high projected earnings and low debt-to-equity ratios.

Objective:

The ETF aims to provide investors with long-term capital appreciation through investment in a portfolio of small-cap growth stocks.

Issuer:

• Company: Invesco
• Reputation and Reliability: Invesco is a leading global investment manager with over $1.4 trillion in assets under management (AUM) and a strong track record in ETF management.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in small-cap investing.

Market Share:

• SBUS has approximately 0.1% of the small-cap growth ETF market share.

Total Net Assets:

• As of November 8, 2023, the ETF has approximately $559 million in total net assets.

Moat:

• Active Management: SBUS is actively managed, aiming to outperform the index through stock selection and allocation.
• Small-cap Focus: The fund's focus on small-cap companies with strong growth potential can provide investors with higher return opportunities compared to broader market investments.

Financial Performance:

• Historical Returns: The ETF has delivered an annualized return of 11.1% since its inception in 2015, outperforming the S&P SmallCap 600 Growth Index.
• Benchmark Comparison: SBUS has consistently outperformed the S&P SmallCap 600 Growth Index over the past few years.

Growth Trajectory:

• The small-cap growth market is expected to continue its growth trajectory, driven by innovation and technology advancements.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of around 12,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.2%, indicating a relatively low cost of trading.

Market Dynamics:

• Economic Indicators: Rising interest rates and inflation could negatively impact small-cap growth companies.
• Sector Growth Prospects: The small-cap growth sector is expected to continue its growth trajectory, driven by technological innovation and economic recovery.

Competitors:

• iShares Russell 2000 Growth ETF (IWO)
• Vanguard Small-Cap Growth ETF (VBK)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio:

• The ETF has an expense ratio of 0.39%.

Investment Approach and Strategy:

• Strategy: SBUS actively manages its portfolio to track the S&P SmallCap 600 Growth Index.
• Composition: The ETF invests primarily in small-cap growth stocks across various sectors, including technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed small-cap growth ETF.
• Strong historical performance and outperformed its benchmark index.
• Moderate liquidity and relatively low cost of trading.
• Targeted at investors seeking long-term capital appreciation through small-cap growth stocks.

Risks:

• Volatility: Small-cap stocks are typically more volatile than large-cap stocks.
• Market Risk: The ETF's performance is tied to the performance of the small-cap growth market, which can be impacted by various factors such as economic conditions, interest rates, and technological advancements.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through small-cap growth stocks.
• Investors who are comfortable with higher volatility levels.
• Investors who have a long-term investment horizon.

Fundamental Rating Based on AI:

• Based on an AI analysis of the factors mentioned above, SBUS receives a 7 out of 10 fundamental rating.
• The rating considers the ETF's strong historical performance, active management approach, and moderate liquidity. However, the potential for higher volatility and market risks are also factored in.

Resources and Disclaimers:

• Data sources: Invesco, Morningstar, Bloomberg
• Disclaimer: This information is for educational purposes only and should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.