UPGD Profile
The Invesco Raymond James SB-1 Equity ETF, now known as UPGD, is designed to track an index comprising stocks that have experienced the most significant improvements in analyst consensus ratings. The fund starts with a broad universe of large- and mid-cap U.S. companies that are covered by more than ten analysts. It excludes stocks with insufficient trading volume or inadequate analyst coverage to ensure liquidity and reliable ratings.
The ETF utilizes Bloomberg Analyst Recommendations (ANR) to evaluate stocks, with ratings ranging from 1 to 5, where 5 represents a strong buy. Stocks are selected based on their ANR ratings, which must fall between less than 4 and more than 1. The fund further refines its selection by calculating an ANR Improvers Score, which assesses the degree of improvement in analyst ratings over the previous 6 and 12 months. This rigorous screening process identifies the top 50 companies with the most favorable scores.
Each of the selected companies is then equally weighted in the fund’s portfolio, ensuring that no single stock disproportionately influences performance. The index that UPGD tracks is reconstituted and rebalanced quarterly to reflect the latest improvements in analyst ratings and maintain alignment with its investment strategy. The fund has undergone multiple reorganizations since its inception in 2008, but it has consistently adhered to its core strategy of capitalizing on enhanced analyst ratings.
Before March 25, 2024, UPGD was known as the Invesco Raymond James SB-1 Equity ETF and traded under the ticker symbol RYJ. This rebranding aligns with the fund's refined focus on stocks with improving analyst recommendations and enhances its clarity and appeal to investors seeking to benefit from stocks with upgraded ratings.
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