Invesco DWA Financial Momentum ETF (PFI)

Overview

The Invesco DWA Financial Momentum ETF (PFI) is designed to track the performance of the Dorsey Wright Financial Momentum Index. It focuses on investing in US financial sector companies demonstrating superior relative strength characteristics.

Reputation and Reliability

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

Management Expertise

Invesco has a dedicated team of investment professionals with expertise in portfolio management, index tracking, and the financial sector.

Goal

The ETF seeks to track the investment results of the Dorsey Wright Financial Momentum Index, providing exposure to US financial companies with high relative strength.

Investment Approach and Strategy

Strategy: The ETF tracks the Dorsey Wright Financial Momentum Index, which selects financial sector companies based on relative strength analysis.

Composition The ETF's holdings consist primarily of stocks within the US financial sector, selected based on their relative price momentum.

Market Share: PFI's market share within the financial sector ETF market is modest.

Total Net Assets (AUM): 118681797

Key Competitors

• Financial Select Sector SPDR Fund (XLF)
• iShares U.S. Financials ETF (IYF)
• Vanguard Financials ETF (VFH)

Competitive Landscape

The financial sector ETF market is highly competitive, dominated by large, broad-based ETFs like XLF, IYF, and VFH. PFI differentiates itself by focusing on momentum, which may appeal to investors seeking active strategies within the sector. However, its niche focus results in a smaller AUM and market share compared to its broader competitors.

Historical Performance: Historical performance data needs to be pulled from a live API and will vary over time and is therefore not represented here.

Benchmark Comparison: Benchmark comparison data needs to be pulled from a live API and will vary over time and is therefore not represented here.

Expense Ratio: 0.6

Average Trading Volume

PFI exhibits moderate liquidity, with an average daily trading volume that facilitates relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread for PFI is typically reasonable, reflecting the fund's liquidity and minimizing transaction costs.

Market Environment Factors

Economic factors such as interest rates, inflation, and regulatory changes significantly influence the financial sector and, consequently, PFI's performance.

Growth Trajectory

PFI's growth is dependent on the continued interest in momentum-based investing within the financial sector, as well as the overall health and performance of the financial industry.

Competitive Edge

PFI's competitive advantage lies in its unique momentum-based strategy, which differentiates it from traditional market-cap-weighted financial sector ETFs. This strategy targets companies exhibiting strong price momentum, potentially capturing outperformance during periods of financial sector strength. However, this same strategy can lead to underperformance during periods of market correction or sector rotation. Its focused approach caters to investors specifically seeking momentum-driven returns within the financial sector.

Volatility

PFI's volatility may be higher than broad-based financial sector ETFs due to its focus on momentum stocks, which can experience more pronounced price swings.

Market Risk

PFI is exposed to market risk specific to the financial sector, including interest rate risk, credit risk, and regulatory risk. A downturn in the financial sector could negatively impact the ETF's performance.

Ideal Investor Profile

The ideal investor for PFI is someone seeking targeted exposure to the financial sector with a momentum-based strategy and who is comfortable with potentially higher volatility.

Market Risk

PFI is more suitable for active traders or investors with a shorter-term investment horizon who are willing to accept higher risk in pursuit of potentially higher returns.

The Invesco DWA Financial Momentum ETF (PFI) offers a differentiated approach to investing in the US financial sector through a momentum-based strategy. It seeks to capture outperformance by investing in companies with strong relative price momentum. While this can potentially lead to higher returns, it also introduces higher volatility. PFI is suited for investors with a higher risk tolerance and a focus on active strategies within the financial sector. Due to its niche strategy it has smaller AUM and market share when compared to the broader ETFs within the same Financial Sector.

Data Sources:

• Invesco
• ETF.com
• Morningstar
• etfdb.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change rapidly.