(PXI) Invesco DWA Energy Momentum - Ratings and Ratios

The Invesco DWA Energy Momentum ETF (NASDAQ: PXI) is designed to track the performance of companies in the energy sector exhibiting strong relative strength or momentum characteristics. The fund typically allocates at least 90% of its total assets to securities included in its underlying index, which is comprised of a minimum of 30 energy-sector companies. This approach aims to capture companies with strong price momentum relative to their peers.

The underlying index employs the Dorsey Wright relative strength methodology, which identifies companies with strong price momentum relative to the broader energy sector. This momentum-driven strategy often results in a concentrated portfolio of high-performing energy stocks. The fund is rebalanced periodically to maintain exposure to the top-performing companies based on relative strength rankings.

From a technical standpoint, PXI is currently trading below its key moving averages, with the 20-day SMA at 44.86 and the 50-day SMA at 45.38. The 200-day SMA of 45.73 indicates a neutral long-term trend. Average trading volume over the past 20 days is 3,625 shares, and the ATR of 0.83 suggests moderate volatility. The fund’s last price of 41.80 reflects recent weakness in the energy sector.

With assets under management (AUM) of $56.54 million, PXI is a relatively small ETF, which may lead to higher volatility compared to larger funds. The fund’s focus on momentum within the energy sector makes it sensitive to broader sector trends and commodity price movements.