Invesco S&P MidCap Value with Momentum ETF (XMVM)

Overview

The Invesco S&P MidCap Value with Momentum ETF (XJH) seeks to track the investment results of the S&P MidCap 400 High Momentum Value Index, which is designed to identify mid-capitalization U.S. companies exhibiting both value and momentum characteristics.

Reputation and Reliability

Invesco is a well-established global investment management firm with a strong reputation and a long track record of offering diverse ETF products.

Management Expertise

Invesco has a team of experienced portfolio managers and analysts dedicated to managing and overseeing their ETF offerings.

Goal

The fund seeks to track the investment results of an index composed of U.S. mid-capitalization stocks with relatively high value and momentum scores.

Investment Approach and Strategy

Strategy: The ETF tracks the S&P MidCap 400 High Momentum Value Index.

Composition The ETF primarily holds stocks of mid-capitalization U.S. companies that exhibit both value and momentum characteristics. These characteristics are identified through quantitative analysis of financial ratios and price trends.

Market Share: Insufficient data to accurately determine current market share.

Total Net Assets (AUM): 114448958

Key Competitors

• SPDR S&P MidCap 400 Value ETF (MDYV)
• Vanguard Mid-Cap Value ETF (VOE)
• iShares Russell Mid-Cap Value ETF (IWSV)

Competitive Landscape

The competitive landscape consists of larger, more established value-focused mid-cap ETFs. XJH differentiates itself with its momentum screen which may lead to higher performance during certain market cycles but also potentially increase volatility compared to broader value-focused funds. XJH is at a disadvantage due to its smaller AUM and relative lack of brand recognition compared to competitors.

Historical Performance: Insufficient data to provide a comprehensive historical performance overview.

Benchmark Comparison: Insufficient data to provide benchmark comparison

Expense Ratio: 0.39

Average Trading Volume

XJH's average trading volume indicates moderate liquidity, which could impact trading costs, particularly for large orders.

Bid-Ask Spread

The bid-ask spread for XJH reflects moderate liquidity, potentially resulting in slightly higher trading costs compared to more liquid ETFs.

Market Environment Factors

Economic growth, interest rates, and sector-specific trends influence the performance of mid-cap value stocks. Risk appetite and momentum-driven market sentiment can also impact the ETF.

Growth Trajectory

The growth trajectory depends on the sustained outperformance of the value and momentum factors within the mid-cap segment and consistent application of the index methodology.

Competitive Edge

XJH's distinct advantage lies in its dual focus on value and momentum factors within the mid-cap space, which seeks to capture the upside potential of both investment styles. The ETF's methodology is designed to select companies that are not only undervalued but also exhibit positive price momentum, potentially leading to superior risk-adjusted returns. This combination aims to avoid value traps and capitalize on companies with strong fundamentals and rising stock prices. Its smaller size might be a disadvantage for larger investors.

Volatility

The ETF's volatility will be affected by its specific holdings and its mid-cap focus, and is likely to be similar to other mid-cap value ETFs.

Market Risk

Market risk is inherent to the ETF due to its investment in equities. Specific risks include economic downturns, sector-specific challenges, and changes in investor sentiment toward value and momentum strategies.

Ideal Investor Profile

Investors seeking a blend of value and momentum strategies in the mid-cap segment, who have a moderate to high risk tolerance, and who are seeking potential outperformance over traditional value strategies may find this ETF suitable.

Market Risk

This ETF may be suitable for long-term investors seeking a targeted value and momentum strategy, though its concentrated focus may not appeal to passive index followers.

The Invesco S&P MidCap Value with Momentum ETF (XJH) offers exposure to mid-cap U.S. companies exhibiting both value and momentum characteristics. Its strategy provides a differentiated approach from traditional value ETFs. The ETF's relatively small AUM and trading volume could impact liquidity. Investors should consider their risk tolerance and investment horizon before investing. The AI rating is based on these factors and aims to represent overall fund quality.

Data Sources:

• Invesco Official Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.