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

Overview

The Invesco Raymond James SB-1 Equity ETF (RYJ) is designed to track the performance of small- and mid-capitalization stocks believed to have strong growth potential. It focuses on companies favored by Raymond James analysts, aiming for capital appreciation by actively selecting constituents based on fundamental analysis.

Reputation and Reliability

Invesco is a large and well-established ETF provider with a strong reputation in the market.

Management Expertise

Invesco has a team of experienced investment professionals managing its ETFs, leveraging their research and expertise to achieve fund objectives.

Goal

The primary goal of RYJ is to achieve long-term capital appreciation by investing in a portfolio of small- and mid-cap U.S. equities deemed attractive by Raymond James.

Investment Approach and Strategy

Strategy: The ETF does not track a broad index but follows the proprietary SB-1 equity research recommendations of Raymond James.

Composition The ETF holds a basket of US small- and mid-capitalization stocks selected based on fundamental analysis.

Market Share: RYJ's market share within the small- and mid-cap active equity ETF space is relatively small compared to broader index-tracking ETFs.

Total Net Assets (AUM): 78880000

Key Competitors

• IWM
• IJH
• VBR
• XSMO
• FNDA

Competitive Landscape

The small- and mid-cap ETF market is competitive, dominated by passive index-tracking funds. RYJ differentiates itself through active management, leveraging Raymond James' research. A disadvantage is the higher expense ratio compared to passive competitors; however, its active management approach might provide potential for outperformance.

Historical Performance: Historical performance varies based on market conditions and the effectiveness of Raymond James' stock selection. Historical data is available from Invesco and major financial data providers.

Benchmark Comparison: Performance is typically compared to the Russell 2000 or S&P MidCap 400 indices to assess the value added by active management.

Expense Ratio: 0.6

Average Trading Volume

RYJ's average trading volume is moderate, reflecting its smaller AUM compared to larger index-tracking ETFs.

Bid-Ask Spread

The bid-ask spread for RYJ varies based on market conditions and trading volume, and is typically wider than that of more liquid, passively-managed, broader market ETFs.

Market Environment Factors

Economic growth, interest rate changes, and investor sentiment towards small- and mid-cap stocks all impact RYJ's performance.

Growth Trajectory

The ETF's growth is tied to the performance of its holdings and Raymond James' stock-picking ability. Changes in holdings may reflect evolving market dynamics and opportunities.

Competitive Edge

RYJ's advantage lies in its active management based on Raymond James' fundamental research, offering potential for outperformance in specific market conditions. This is different from passive index funds. The ETF also benefits from the brand name of Raymond James, which helps attract investors who trust Raymond James analysis. However, RYJ is reliant on the research capabilities of Raymond James and their ability to pick winning stocks, which may not always happen.

Volatility

As a small- and mid-cap focused ETF, RYJ can experience higher volatility than broader market ETFs.

Market Risk

RYJ is exposed to market risk, particularly those specific to small- and mid-cap companies, including economic sensitivity and business execution risks.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation, comfortable with higher risk associated with small- and mid-cap stocks, and believes in the value of active management.

Market Risk

RYJ is suitable for long-term investors with a higher risk tolerance who are seeking potential outperformance through active management.

The Invesco Raymond James SB-1 Equity ETF (RYJ) offers exposure to a portfolio of small- and mid-cap U.S. stocks hand-picked by Raymond James analysts. It aims to deliver long-term capital appreciation through active management, differing from passively managed ETFs tracking broad market indexes. The ETF's success relies on the stock-picking ability of Raymond James and carries greater risk compared to broader market ETFs due to its focus on smaller companies. Potential investors should consider their risk tolerance and investment horizon before investing in RYJ.

Data Sources:

• Invesco official website
• Raymond James Research
• Morningstar
• FactSet

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on your own research and risk tolerance. Market data is subject to change.