PDP Profile
The Invesco DWA Momentum ETF is strategically designed to provide investors with targeted exposure to high-momentum stocks. The fund typically invests at least 90% of its total assets in the securities that make up its underlying index. This index is curated from a broad pool of about 1,000 of the largest constituents within the NASDAQ US Benchmark Index, focusing on approximately 100 selected securities that exhibit strong momentum characteristics.
The underlying index employs a sophisticated momentum-based selection methodology to identify and include securities that are demonstrating superior price momentum relative to their peers. Momentum investing involves targeting stocks that have shown an upward trend in their stock price, reflecting strong market performance and investor interest. The index's design is intended to capture these trends and maximize potential returns based on historical performance metrics.
The Invesco DWA Momentum ETF leverages this momentum-driven strategy by investing predominantly in these high-performing stocks. This approach aims to capitalize on market inefficiencies and momentum trends that can drive superior returns. By concentrating on securities with robust momentum indicators, the fund seeks to deliver enhanced performance compared to broader market indices, benefiting investors who seek to gain from the continued upward movement of selected stocks.
As an actively managed fund, the Invesco DWA Momentum ETF regularly reviews and rebalances its portfolio to reflect the latest momentum trends and market conditions. This ongoing adjustment process ensures that the fund remains aligned with its investment strategy and continues to target high-momentum stocks. Investors in the ETF gain access to a dynamic investment strategy that seeks to harness the power of momentum investing to achieve potentially superior returns.
|
