Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)

Overview

The Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) seeks to track the investment results of the FTSE RAFI Developed ex US Small-Mid Index, which is composed of small- and mid-capitalization developed market equities outside the U.S. utilizing a fundamental weighting approach.

Reputation and Reliability

Invesco is a well-established and reputable global investment management firm with a long track record of offering a variety of ETFs.

Management Expertise

Invesco has a dedicated team of portfolio managers and analysts with extensive experience in managing ETFs and implementing factor-based investment strategies.

Goal

Seeks long-term capital appreciation by replicating the FTSE RAFI Developed ex US Small-Mid Index.

Investment Approach and Strategy

Strategy: Tracks the FTSE RAFI Developed ex US Small-Mid Index, which uses a fundamental weighting methodology based on factors such as book value, cash flow, sales, and dividends.

Composition Primarily holds stocks of small- and mid-sized companies in developed markets, excluding the United States.

Market Share: PDN's market share in the developed markets ex-US small-mid cap ETF space is relatively small.

Total Net Assets (AUM): 388763195

Key Competitors

• SPDW (SPDR Portfolio Developed World ex-US ETF)
• GWX (SPDR S&P International Small Cap ETF)
• SCZ (iShares EAFE Small-Cap ETF)

Competitive Landscape

The competitive landscape is characterized by several large ETF providers offering similar exposure to developed market equities. PDN's fundamental weighting approach differentiates it, but it faces competition from ETFs with larger AUM and potentially lower expense ratios. The advantage of PDN lies in its fundamentally weighted index, but its disadvantage is its smaller AUM compared to competitors.

Historical Performance: Historical performance data should be reviewed to assess returns over various periods. (Performance data not readily available in requested format)

Benchmark Comparison: PDN's performance should be compared to the FTSE RAFI Developed ex US Small-Mid Index to evaluate tracking accuracy. (Benchmark Performance data not readily available in requested format)

Expense Ratio: 0.32

Average Trading Volume

PDN's average trading volume indicates moderate liquidity, which can impact trading costs.

Bid-Ask Spread

The bid-ask spread reflects the cost of trading PDN shares and can fluctuate based on market conditions.

Market Environment Factors

Economic growth in developed markets, interest rate policies, and currency fluctuations significantly affect PDN's performance.

Growth Trajectory

PDN's growth depends on the performance of small- and mid-cap companies in developed markets outside the US, as well as investor demand for fundamentally weighted ETFs.

Competitive Edge

PDN's competitive advantage lies in its use of a fundamental weighting methodology (RAFI) which aims to select and weight securities based on fundamental factors rather than market capitalization, potentially leading to superior long-term returns. The RAFI approach focuses on factors like book value, cash flow, sales, and dividends. This strategy could potentially offer a value tilt compared to traditional market-cap weighted indices. However, this unique approach also has a higher expense ratio compared to other developed market ETFs.

Volatility

PDN's volatility is typical of small- and mid-cap equities, which tend to be more volatile than large-cap stocks.

Market Risk

PDN is subject to market risk, including economic downturns, political instability, and fluctuations in currency exchange rates in developed markets.

Ideal Investor Profile

PDN is suitable for investors seeking exposure to small- and mid-cap equities in developed markets outside the U.S., and those who believe in the value-oriented fundamental weighting approach.

Market Risk

PDN is best suited for long-term investors with a moderate to high risk tolerance who are seeking diversification in international equities.

The Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) offers exposure to small- and mid-cap companies in developed markets outside the U.S. The fund uses a fundamentally weighted index strategy. PDN faces competition from other developed market ETFs with similar exposure. The fund is best suited for long-term investors looking for diversification in international equities with a preference for the RAFI weighting methodology.

Data Sources:

• Invesco.com
• ETF.com
• Morningstar.com
• YCharts.com

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share estimates are approximate and may vary. Performance data is not provided and should be researched separately.