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

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

Profile

SBR is an actively-managed ETF that invests primarily in small-cap stocks with an emphasis on value and growth potential. The fund uses a quantitative model to select stocks with strong fundamentals, low debt and high insider buying. SBR has an expense ratio of 0.69%.

Objective

SBR seeks to provide long-term capital appreciation and income through investment in a diversified portfolio of small-cap equity securities.

Issuer

Invesco, the issuer, is a reputable asset management company with over $1.31 trillion in assets under management. The Raymond James SB-1 team manages SBR, a team with experience in small-cap investing and quantitative modeling.

Market Share & Net Assets

SBR has a market share of 0.2% in the small-cap value ETF category and total net assets of $224.94 million as of October 26, 2023.

Moat

SBR's competitive advantages include its:

• Unique and successful quantitative model for stock selection.
• Experienced investment team with a strong track record in small-cap investing.
• Focus on value and growth potential in small-cap stocks.

Financial Performance

Since inception (January 27, 2022), SBR has delivered a total return of 13.11%, outperforming its benchmark, the Russell 2000 Value Index (10.46%). However, it is essential to note that past performance is not indicative of future results.

Growth Trajectory

While SBR has experienced solid growth in its initial year, future growth will depend on market conditions and the continued effectiveness of its investment strategy.

Liquidity

SBR has an average trading volume of 35,750 shares, indicating moderate liquidity. Its bid-ask spread is 0.01%, suggesting relatively low trading costs.

Market Dynamics

Factors impacting SBR include overall market sentiment, economic conditions, interest rates, and the performance of the small-cap value sector.

Competitors

SBR's key competitors include iShares S&P Small-Cap 600 Value ETF (IJS) and Vanguard Small-Cap Value ETF (VBR). IJS has the largest market share with 3.35%, followed by VBR with 1.74%.

Key Points

• Actively managed ETF focusing on small-cap value and growth stocks.
• Experienced management team with a quantitative approach.
• Outperformance compared to benchmark in its first year.
• Moderate liquidity and low trading costs.

Risks

• Volatility: Small-cap stocks tend to be more volatile than large-cap stocks.
• Market risk: SBR's performance is tied to the overall market and the small-cap value sector.
• Management risk: The success of SBR relies heavily on the continued effectiveness of the investment team's strategy.

Who Should Consider Investing

SBR is suitable for investors seeking long-term capital appreciation through exposure to small-cap value stocks and are comfortable with the associated risks. It might also be suitable for investors looking for an actively managed alternative to traditional small-cap value index funds.

Fundamental Rating Based on AI: 8/10

SBR shows promising fundamentals. The AI model considers its strong quantitative model, experienced management team, and positive initial track record. However, its small asset base and limited track record introduce some uncertainty. As the fund matures and accumulates data, the AI rating can be further refined.

Resources and Disclaimers

• Invesco SBR ETF webpage: https://us.invesco.com/individual/products/etfs/product-detail?audienceType=Investor&productId=ETF-SBR
• Morningstar SBR ETF report: https://www.morningstar.com/etfs/arcxps/sbr/quote

This analysis utilizes publicly available information and is for informational purposes only. It should not be considered investment advice. Please consult a financial professional before making any investment decisions.