Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) Fund Overview

Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) Financial Services Profile

Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) provides exposure to emerging market equities demonstrating strong relative strength, tracking the Dorsey Wright Emerging Markets Technical Leaders Index. The fund focuses on approximately 100 companies across diverse emerging economies, excluding US-listed entities, offering a momentum-driven investment strategy.

What Is the Investment Thesis for PIE?

PIE offers investors targeted exposure to emerging market equities with strong momentum characteristics. With a beta of 0.90, the fund exhibits slightly lower volatility compared to the broader market. The fund's quarterly rebalancing and reconstitution process ensures that it remains focused on companies with the strongest relative strength, potentially capturing short-term gains. However, the fund's performance is highly dependent on the continued momentum of its constituent stocks. A shift in market sentiment or a decline in the relative strength of these companies could negatively impact the fund's returns. The fund's expense ratio and tracking error relative to the Dorsey Wright Emerging Markets Technical Leaders Index are also important factors to consider.

Based on FMP financials and quantitative analysis

PIE Key Highlights

Market Cap of $0.13B indicates a relatively small fund size within the emerging markets ETF landscape.

• Beta of 0.90 suggests the fund is slightly less volatile than the overall market.
• The fund invests at least 90% of its total assets in securities of emerging economies.
• Quarterly rebalancing and reconstitution ensures the fund maintains its focus on companies with strong momentum.
• The fund tracks the Dorsey Wright Emerging Markets Technical Leaders Index, which selects approximately 100 companies from the Nasdaq Emerging Markets Index.

Who Are PIE's Competitors?

PIE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are PIE's Key Strengths?

Focus on momentum factor, which has historically generated strong returns.

• Exposure to a diversified portfolio of emerging market equities.
• Quarterly rebalancing and reconstitution to maintain momentum focus.
• Established track record of tracking the Dorsey Wright Emerging Markets Technical Leaders Index.

What Are PIE's Weaknesses?

Performance is highly dependent on the continued momentum of constituent stocks.

• Expense ratio may be higher than some broad-based emerging market ETFs.
• Small market cap may limit liquidity.
• Vulnerable to fluctuations in emerging market currencies.

What Are the Key Risks for PIE?

A shift in market sentiment away from momentum investing.

• Geopolitical risks and political instability in emerging market countries.
• Currency fluctuations and devaluation in emerging markets.
• Increased competition from other emerging market ETFs.
• Dependence on the continued momentum of constituent stocks.

What Are PIE's Competitive Advantages?

• Brand recognition of Invesco as a leading ETF provider.
• Proprietary Dorsey Wright relative strength methodology.
• Established track record of tracking the Dorsey Wright Emerging Markets Technical Leaders Index.
• First-mover advantage in offering a momentum-focused emerging markets ETF.

What Does PIE Do?

The Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) is designed to track the performance of the Dorsey Wright Emerging Markets Technical Leaders Index. The fund invests primarily in securities of companies located in emerging market countries, as defined by Dorsey Wright & Associates. These countries include, but are not limited to, Brazil, Chile, China, India, Indonesia, Philippines, South Africa, Thailand, and Turkey. The ETF may also invest in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on securities within the Index. The Index selects approximately 100 companies from the Nasdaq Emerging Markets Index that exhibit strong relative strength characteristics. Relative strength is a momentum-based factor that identifies companies whose stock prices have been outperforming their peers. The Index excludes US companies listed on a US stock exchange. The Fund and the Index are rebalanced and reconstituted quarterly to maintain its focus on companies with strong momentum. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. Originally named Invesco DWA Emerging Markets Momentum ETF, the fund's name changed to Invesco Dorsey Wright Emerging Markets Momentum ETF on August 25, 2023.

What Products and Services Does PIE Offer?

• Tracks the performance of the Dorsey Wright Emerging Markets Technical Leaders Index.
• Invests primarily in securities of companies located in emerging market countries.
• May invest in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs).
• Selects approximately 100 companies from the Nasdaq Emerging Markets Index with strong relative strength.
• Excludes US companies listed on a US stock exchange.
• Rebalances and reconstitutes the Index quarterly.

How Does PIE Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• AUM growth is driven by market appreciation and net investor inflows.
• Expenses include operational costs, administrative fees, and marketing expenses.

What Industry Does PIE Operate In?

The asset management industry is highly competitive, with numerous ETFs offering exposure to emerging markets. PIE differentiates itself through its focus on momentum, a factor that has historically generated strong returns. The emerging markets ETF segment is influenced by global economic trends, geopolitical events, and currency fluctuations. Competitors like BSMC, DEW, ECNS, EMMF, and ERNZ offer alternative approaches to investing in emerging markets, such as focusing on specific countries, sectors, or investment styles. The growth of the emerging markets ETF segment is driven by increasing investor interest in diversifying their portfolios and capturing the growth potential of developing economies.

Who Are PIE's Key Customers?

• Institutional investors seeking exposure to emerging market equities.
• Financial advisors using ETFs in client portfolios.
• Retail investors looking for diversified emerging market investments.
• Pension funds and endowments seeking long-term capital appreciation.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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