(PDP) Invesco DWA Momentum - Ratings and Ratios

The Invesco DWA Momentum ETF (PDP) is designed to track the performance of the Dorsey Wright Momentum Index, which focuses on identifying securities with strong momentum characteristics. The fund typically allocates at least 90% of its assets to securities included in this index, ensuring a high level of adherence to its investment strategy.

The underlying index is constructed from a universe of approximately 1,000 securities, representing the largest constituents by market capitalization within the NASDAQ U.S. benchmark index. From this universe, the index selects around 100 securities that exhibit the strongest relative momentum. This momentum is determined using a proprietary methodology developed by Dorsey Wright, which evaluates factors such as price movement and trading activity to identify securities with sustained upward trends.

As a large growth ETF, PDP focuses on capturing the performance of large-cap companies that are experiencing strong momentum. The fund’s AUM of approximately $1.4 billion reflects its popularity among investors seeking exposure to high-momentum large-cap stocks. The ETF is listed on the NASDAQ exchange under the ticker symbol PDP and is managed by Invesco, a well-established global investment management firm.

For investors and fund managers, PDP offers a targeted way to gain exposure to momentum-driven large-cap equities. The fund’s methodology emphasizes relative strength, which can be particularly effective in identifying companies that are outperforming their peers. However, it’s important to note that momentum strategies can be volatile and may underperform during market downturns or periods of sector rotation.

Additional details about the fund, including its full holdings, performance, and investment strategy, can be found on Invesco’s official website at http://www.invesco.com/us.