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. It focuses on mid-capitalization U.S. equities exhibiting both value and momentum characteristics, offering a targeted approach to capturing potential outperformance in this market segment.

Reputation and Reliability

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

Management Expertise

Invesco's management team consists of experienced professionals specializing in quantitative investing and ETF portfolio management.

Goal

The ETF aims to provide investment results that correspond generally to the price and yield of the S&P MidCap 400 High Momentum Value Index.

Investment Approach and Strategy

Strategy: The ETF tracks the S&P MidCap 400 High Momentum Value Index, which selects stocks from the S&P MidCap 400 based on value and momentum scores.

Composition The ETF holds a portfolio of mid-capitalization U.S. equities that exhibit both value and momentum characteristics.

Market Share: XJH holds a relatively small market share within the mid-cap value ETF segment.

Total Net Assets (AUM): 137830458.12

Key Competitors

• Vanguard Mid-Cap Value ETF (VOE)
• iShares Russell Mid-Cap Value ETF (IWS)
• Schwab Fundamental U.S. Mid-Cap ETF (FNDM)

Competitive Landscape

The mid-cap value ETF industry is highly competitive, with several large players dominating the market. XJH distinguishes itself through its value and momentum factor strategy. However, it faces stiff competition from larger, more established ETFs with lower expense ratios and greater liquidity. A potential advantage is XJH's factor focus; a potential disadvantage is its relatively smaller size compared to competitors.

Historical Performance: Historical performance data should be sourced from financial data providers. This will depend on date of analysis.

Benchmark Comparison: Benchmark comparisons are also data dependent and would rely on financial information.

Expense Ratio: 0.39

Average Trading Volume

The ETF's average trading volume is moderate, but lower than its major competitors, affecting ease of trade execution.

Bid-Ask Spread

The bid-ask spread can be slightly wider than larger, more liquid ETFs, which might increase trading costs.

Market Environment Factors

Economic indicators, sector growth prospects, and overall market conditions impact the performance of mid-cap value stocks and thus the ETF's performance.

Growth Trajectory

The ETF's growth depends on the sustained performance of its value and momentum strategy within the mid-cap segment. Significant AUM growth will depend on consistent outperformance.

Competitive Edge

XJH's advantage lies in its unique investment strategy that combines value and momentum factors, potentially capturing superior returns compared to traditional value ETFs. This targeted approach allows investors to gain exposure to mid-cap stocks with specific characteristics. The momentum factor can help to identify stocks with strong price trends, while the value factor focuses on undervalued companies. This dual-factor approach offers diversification and potentially enhanced risk-adjusted returns. However, the strategy is only as good as its implementation.

Volatility

Volatility will vary based on market conditions and the ETF's underlying holdings.

Market Risk

The ETF is exposed to market risk associated with mid-cap equities, including potential economic downturns and sector-specific challenges.

Ideal Investor Profile

The ideal investor is one seeking targeted exposure to mid-cap value stocks with a focus on momentum and is comfortable with moderate risk. It's suitable for investors who understand factor-based investing.

Market Risk

This ETF is suitable for long-term investors who believe in the potential outperformance of value and momentum strategies in the mid-cap space, but perhaps not for active traders due to moderate trading volume.

The Invesco S&P MidCap Value with Momentum ETF (XJH) offers investors a targeted approach to accessing the mid-cap value segment by incorporating a momentum factor. Its expense ratio of 0.39% is a key consideration when evaluating this ETF alongside its larger peers. The ETFu2019s smaller AUM impacts its liquidity compared to competitors. The strategy seeks to outperform, but past performance is not indicative of future results; so it is important to weigh its strengths with its competitors before investing. Overall, it presents a specialized option within a broader market landscape.

Data Sources:

• Invesco Official Website
• Morningstar
• ETFdb.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Consult with a financial advisor before making any investment decisions.