PFI - ETF AI Analysis

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Invesco DWA Financial Momentum ETF (PFI)

Rating:73Outperform

Price Target:―

PFI, the Invesco DWA Financial Momentum ETF, earns a solid overall rating largely because many of its biggest positions—like American Express, Nasdaq, Morgan Stanley, and JPMorgan—show strong financial performance, positive earnings commentary, and generally supportive technical trends that point to stable or growing businesses. This strength is partly offset by holdings such as Lemonade, where profitability and valuation concerns introduce more uncertainty, and by risks like high leverage or potentially rich valuations in several financial names, which could make the fund more sensitive to market downturns in the financial sector.

Positive Factors

Improving Recent Performance

The ETF has shown positive performance over the last three months, suggesting some momentum after a softer recent month.

Strong Contributors Among Top Holdings

Several key holdings, such as Lemonade, Interactive Brokers, and Goldman Sachs, have delivered strong year-to-date gains that support the fund’s overall results.

Focused Financial and Real Estate Exposure

The fund’s concentration in financial and real estate companies allows investors to target sectors that can benefit when economic and interest-rate conditions are favorable.

Negative Factors

High Sector Concentration

With most assets in financials and the rest in real estate, the ETF is heavily exposed to just two sectors, increasing the impact of downturns in those areas.

Limited Geographic Diversification

Almost all holdings are in U.S. companies, so the fund offers little protection if the U.S. market or economy weakens.

Relatively High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

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

AUM35.59M

RegionNorth America

Expense Ratio0.60%

Beta1.10

IssuerInvesco

Inception DateOct 12, 2006

Dividend Yield0.73%

Asset ClassEquity

Index TrackedDorsey Wright Financials Tech Leaders TR

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume40,817

30 Day Avg. Volume9,814

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

66.70

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering42

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

PFI Summary

The Invesco DWA Financial Momentum ETF (PFI) is a fund that follows the Dorsey Wright Financials Tech Leaders index, focusing on U.S. financial and real estate companies whose stock prices have been rising strongly. It holds well-known names like JPMorgan Chase and American Express, along with other banks, brokers, insurers, and real estate firms. Someone might invest in PFI to seek growth from leading financial stocks while getting instant diversification across many companies in this sector. A key risk is that it is heavily concentrated in financials, so it can rise or fall sharply with the financial sector.

How much will it cost me?The Invesco DWA Financial Momentum ETF (PFI) 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 financial companies with strong momentum, which requires more research and strategy compared to passively managed ETFs. It’s important to weigh the higher cost against the potential for targeted growth in the financial sector.

What would affect this ETF?The Invesco DWA Financial Momentum ETF (PFI) could benefit from positive trends in the financial sector, such as increased consumer spending, technological innovation in financial services, and favorable interest rate environments that boost banking and investment activities. However, it may face challenges from regulatory changes, economic downturns, or rising interest rates that could negatively impact lending and real estate markets. Its focus on U.S.-based financial companies and momentum-driven stocks makes it sensitive to shifts in market sentiment and sector performance.

PFI Top 10 Holdings

PFI is very much a U.S. financials story, with big banks and niche players sharing the stage. Goldman Sachs and Morgan Stanley have been rising lately, helping to pull the fund forward, while Interactive Brokers has added a steady tailwind despite some recent wobbling. On the flip side, American Express and Raymond James look a bit tired, and Lemonade has been a real drag, losing steam in a big way. A smaller slice in real estate via names like Welltower and Simon Property adds a healthier, more defensive counterweight to the fund’s bank-heavy tilt.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JPM	JPMorgan Chase	5.10%	$1.79M	$781.92B	24.85%	72 Outperform
IBKR	Interactive Brokers	4.52%	$1.58M	$30.06B	61.50%	75 Outperform
NDAQ	Nasdaq	3.84%	$1.34M	$50.05B	20.86%	78 Outperform
RJF	Raymond James Financial	3.73%	$1.30M	$29.80B	9.86%	76 Outperform
LMND	Lemonade	3.55%	$1.24M	$4.21B	68.50%	60 Neutral
AXP	American Express	3.53%	$1.24M	$209.68B	16.86%	80 Outperform
MS	Morgan Stanley	3.53%	$1.23M	$254.77B	43.66%	76 Outperform
WELL	Welltower	3.43%	$1.20M	$144.91B	42.05%	77 Outperform
GS	Goldman Sachs Group	3.35%	$1.17M	$246.91B	56.50%	73 Outperform
VTR	Ventas	3.25%	$1.14M	$41.93B	27.70%	68 Neutral

PFI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

57.61

Negative

100DMA

57.16

Negative

200DMA

56.61

Negative

Market Momentum

MACD

-0.95

Positive

RSI

37.15

Neutral

STOCH

19.63

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PFI, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 55.85, equal to the 50-day MA of 57.61, and equal to the 200-day MA of 56.61, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PFI.

PFI Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
PFI	―	―	$35.59M	0.60%	73 Outperform
QABA	―	―	$76.38M	0.60%	73 Outperform
GABF	―	―	$50.58M	0.32%	68 Neutral
FBDC	―	―	$33.97M	13.69%	72 Outperform
PSCF	―	―	$23.68M	0.29%	69 Neutral
TFNS	―	―	$11.67M	0.44%	71 Outperform

Performance Comparison

PFI

Invesco DWA Financial Momentum ETF

53.50

2.46

4.82%

QABA

First Trust NASDAQ ABA Community Bank Index Fund

―

GABF

Gabelli Financial Services Opportunities ETF

―

FBDC

FT Confluence BDC & Specialty Finance Income ETF

―

PSCF

Invesco S&P SmallCap Financials ETF

―

TFNS

T. Rowe Price Financials 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.

Disclaimer

This 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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