DWAS Profile
The Invesco DWA SmallCap Momentum ETF is a specialized fund that targets small-cap U.S. companies demonstrating strong momentum characteristics. Under normal market conditions, the fund allocates at least 90% of its total assets to the securities included in the underlying index. This index is carefully constructed by the index provider, utilizing a proprietary methodology aimed at identifying small-cap stocks exhibiting significant relative strength and positive momentum.
The index used by the fund employs a systematic approach to select small-cap stocks listed on U.S. exchanges. It focuses on companies that have shown robust performance relative to their peers, based on various momentum indicators. This approach is designed to capture stocks with strong upward price trends and positive market sentiment, reflecting their potential for continued outperformance.
Invesco's ETF strategy emphasizes investing in companies with superior momentum, which typically involves evaluating factors such as recent price performance, earnings growth, and other momentum signals. The selection process prioritizes securities that demonstrate high relative strength compared to their market counterparts, aiming to provide investors with exposure to high-growth small-cap stocks poised for further gains.
The fund's investment approach is intended to capitalize on market trends and shifts in momentum, offering investors a focused strategy to potentially achieve higher returns from small-cap equities. By maintaining a significant allocation to the index's constituent securities, the Invesco DWA SmallCap Momentum ETF seeks to deliver performance that aligns closely with the momentum characteristics of the underlying small-cap market segment.
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