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PEZ - ETF AI Analysis

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PEZ

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

Rating:69Neutral
Price Target:
PEZ, the Invesco DWA Consumer Cyclicals Momentum ETF, earns a solid overall rating thanks to strong contributors like TJX, Walmart, Ralph Lauren, and Netflix, which show robust financial performance, positive earnings calls, and generally supportive technical trends that bolster the fund’s quality. However, holdings such as McKesson and Marriott, where leverage, valuation concerns, and some bearish technical signals appear, along with pockets of high valuation risk across several names, slightly weigh on the rating and highlight the main risk of exposure to companies with significant debt and premium pricing.
Positive Factors
Strong Top Holdings Momentum
Many of the largest positions, including several well-known consumer and e-commerce names, have shown strong year-to-date gains that support the fund’s overall performance.
Focused Consumer Cyclical Exposure
The ETF’s heavy tilt toward consumer cyclical companies allows investors to benefit when consumer spending and economic conditions are strong.
Positive Recent Performance Trend
The fund has delivered steady gains over the year and over the last three months, indicating improving momentum despite a slightly weak recent one-month period.
Negative Factors
High Sector Concentration
With most assets in the consumer cyclical sector, the fund is vulnerable to downturns in consumer spending or economic slowdowns.
Limited Geographic Diversification
Almost all holdings are in U.S. companies, so the ETF offers little geographic diversification if the U.S. market weakens.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which can gradually reduce net returns for long-term investors.

PEZ vs. SPDR S&P 500 ETF (SPY)

PEZ Summary

PEZ is the Invesco DWA Consumer Cyclicals Momentum ETF, which follows the Dorsey Wright Consumer Cyclicals Tech Leaders index. It focuses mainly on U.S. consumer discretionary companies that tend to do well when people are spending more, such as Amazon, Wayfair, Ralph Lauren, and Tapestry. The fund looks for stocks with strong recent performance, so investors might consider it if they want growth potential tied to changing consumer trends and economic upswings. A key risk is that these types of stocks can be very sensitive to the economy, so the ETF’s price can rise and fall sharply with market conditions.
How much will it cost me?The Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on a momentum strategy within the Consumer Discretionary sector to select outperforming stocks.
What would affect this ETF?The PEZ ETF, focused on the Consumer Discretionary sector, could benefit from economic growth and rising consumer spending, which often drive demand for cyclical goods and services. However, it may face challenges during economic downturns or periods of high inflation, as consumers tend to cut back on discretionary spending. Additionally, interest rate hikes or regulatory changes affecting top holdings like Amazon or Carvana could impact performance.

PEZ Top 10 Holdings

PEZ is heavily tilted toward U.S. consumer cyclicals, and its story right now is a tug-of-war between winners and laggards. Discount retailer Five Below has been a bright spot, rising on strong results and upbeat growth expectations. But fashion names like Ralph Lauren and Victoria’s Secret are losing steam, weighing on the fund’s consumer theme. Amazon, usually a market engine, has also been mixed lately, adding to the drag. Health-care distributors McKesson and Cardinal Health provide a steadier counterweight, but this ETF still lives and dies by discretionary spending trends.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Tapestry4.26%$1.02M$30.65B144.89%
69
Neutral
Cardinal Health3.79%$907.75K$49.85B58.85%
66
Neutral
Ralph Lauren3.73%$892.92K$22.37B87.35%
78
Outperform
Netflix3.58%$857.69K$454.77B0.01%
73
Outperform
Hilton Worldwide Holdings3.48%$833.14K$75.42B62.05%
67
Neutral
McKesson3.45%$825.66K$105.76B24.29%
62
Neutral
Marriott International3.43%$820.11K$96.37B71.47%
62
Neutral
Walmart3.32%$794.58K$994.64B36.77%
78
Outperform
Williams-Sonoma3.18%$761.18K$22.95B42.73%
75
Outperform
Five Below3.16%$756.03K$12.34B249.96%
76
Outperform

PEZ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
100.42
Positive
100DMA
102.41
Positive
200DMA
100.73
Positive
Market Momentum
MACD
0.71
Negative
RSI
63.40
Neutral
STOCH
100.03
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PEZ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 97.83, equal to the 50-day MA of 100.42, and equal to the 200-day MA of 100.73, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 100.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEZ.

PEZ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$23.28M0.60%
69
Neutral
$34.22M0.15%
70
Outperform
$28.18M0.18%
70
Outperform
$22.63M0.29%
67
Neutral
$7.36M0.65%
59
Neutral
$2.16M1.00%
60
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PEZ
Invesco DWA Consumer Cyclicals Momentum ETF
103.64
23.26
28.94%
GXPD
Global X PureCap MSCI Consumer Discretionary ETF
IEDI
iShares Evolved US Discretionary Spending ETF
PSCD
Invesco S&P SmallCap Consumer Discretionary ETF
CLIX
ProShares Long Online/Short Stores ETF
EATZ
AdvisorShares Restaurant ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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