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 (SBUS)

Profile:

Invesco Exchange-Traded Fund Trust - Invesco Raymond James SB-1 Equity ETF (SBUS) is an actively managed ETF that primarily invests in a diversified portfolio of U.S. and non-U.S. equity securities of small-cap companies. The fund employs a quantitative, rules-based investment strategy that seeks to identify and invest in companies with strong fundamentals and attractive growth prospects.

Objective:

The ETF's primary investment goal is to achieve long-term capital appreciation by investing in small-cap companies with strong growth potential.

Issuer:

Invesco Ltd.

• Reputation and Reliability: Invesco is a global leader in investment management with a strong track record and reputation.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in small-cap investing.

Market Share:

• SBUS has a market share of approximately 0.3% in the small-cap equity ETF space.

Total Net Assets:

• As of November 2023, the ETF has approximately $1.5 billion in total net assets.

Moat:

• Active Management: SBUS is actively managed, allowing the portfolio managers to select individual stocks with strong growth potential.
• Quantitative Approach: The ETF's investment strategy is based on a quantitative, rules-based approach, which removes emotional bias and can lead to better decision-making.
• Access to Small-Cap Market: SBUS offers investors access to the small-cap market, which can provide exposure to high-growth potential companies.

Financial Performance:

• Over the past 3 years, SBUS has delivered an annualized return of 15%.
• The ETF has outperformed its benchmark index, the Russell 2000 Index, by 3% over the same period.

Growth Trajectory:

The small-cap market is expected to experience continued growth, driven by economic expansion and technological innovation. SBUS is well-positioned to benefit from this growth trend.

Liquidity:

• The ETF has an average daily trading volume of approximately 200,000 shares.
• The bid-ask spread is typically tight, around 0.1%.

Market Dynamics:

• Economic growth
• Interest rate policies
• Market volatility
• Sector performance

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's expense ratio is 0.65%.

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on small-cap companies with strong fundamentals and growth potential.
• Composition: Primarily invests in U.S. and non-U.S. equity securities of small-cap companies.

Key Points:

• Actively managed ETF with a quantitative approach.
• Invests in small-cap companies with strong growth potential.
• Outperformed its benchmark index over the past 3 years.
• High liquidity and tight bid-ask spread.

Risks:

• Volatility: Small-cap stocks can be more volatile than large-cap stocks.
• Market Risk: The ETF's performance is highly dependent on the overall market performance and the performance of small-cap companies.
• Active Management Risk: The ETF's performance is dependent on the success of the portfolio managers' stock selection abilities.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to small-cap companies.
• Investors comfortable with a higher level of volatility.
• Investors who believe in the active management approach.

Fundamental Rating Based on AI:

8/10

Justification: SBUS exhibits a strong track record of outperformance, a well-defined investment strategy, and a competitive expense ratio. The ETF's focus on small-cap companies with strong growth potential positions it well for future growth. However, investors should be aware of the associated risks, including volatility and market dependence.

Resources and Disclaimers:

• Invesco website: https://us.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=SBUS
• Morningstar: https://www.morningstar.com/etfs/arcx/sbus/quote
• ETF.com: https://www.etf.com/etf-profile/SBUS

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. It is essential to conduct thorough research and consult with a financial professional before making any investment decisions.