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PFI - ETF AI Analysis

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PFI

Invesco DWA Financial Momentum ETF (PFI)

Rating:72Outperform
Price Target:
PFI, the Invesco DWA Financial Momentum ETF, earns a solid overall rating driven mainly by strong, well-established financial names like JPMorgan Chase, Morgan Stanley, Goldman Sachs, and Welltower, which show healthy financial performance, positive earnings commentary, and generally supportive technical trends. The fund is somewhat held back by holdings such as Lemonade and American Healthcare REIT, where profitability and valuation concerns are more pronounced. The main risk factor is its concentration in financial and real-estate-related companies, which can make the ETF more sensitive to interest rates and economic cycles.
Positive Factors
Momentum in Recent Performance
The ETF has shown strong short-term momentum with a solid recent one-month return, which can be attractive to trend-focused investors.
Strong Financial and Real Estate Leaders
Several top holdings in major banks, brokers, and real estate companies have delivered strong gains, helping support the fund’s overall results.
Focused Exposure to U.S. Market
Almost all assets are invested in U.S. companies, giving investors targeted exposure to the U.S. financial and real estate markets.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
Sector Concentration Risk
With most assets in financials and the rest in real estate, the ETF is heavily exposed to downturns in these two sectors.
Mixed Performance Among Top Holdings
Some of the largest positions, including certain big banks and an insurance technology stock, have shown weak or negative performance this year, which can drag on the fund.

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

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 Goldman Sachs, along with other banks, insurers, brokers, and real estate firms. Someone might invest in PFI to seek growth from financial companies that are currently performing well and to get diversified exposure within the financial sector. A key risk is that it is heavily concentrated in financial and real estate stocks, so it can rise or fall sharply with those parts of the market.
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 leaning hard into U.S. financials, with big banks and brokers setting the tone while a few riskier names add drama. Interactive Brokers, Morgan Stanley, Goldman Sachs, Citigroup, and BNY Mellon are all rising, giving the fund a solid tailwind from Wall Street’s heavy hitters. JPMorgan looks steadier, not really stealing the show but not dragging it either. On the weaker side, Lemonade has been losing steam, tempering some of that momentum. Real estate plays like Welltower and Simon Property add a secondary theme, also trending positively.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
JPMorgan Chase5.30%$1.91M$831.44B28.13%
72
Outperform
Interactive Brokers4.84%$1.75M$34.14B83.27%
75
Outperform
Morgan Stanley4.83%$1.74M$297.41B64.19%
76
Outperform
Lemonade4.74%$1.71M$5.02B122.22%
60
Neutral
American Healthcare REIT, Inc.4.37%$1.58M$9.71B59.29%
64
Neutral
Goldman Sachs Group3.68%$1.33M$273.43B71.63%
73
Outperform
Welltower3.29%$1.19M$146.25B40.89%
77
Outperform
Citigroup3.18%$1.15M$219.47B89.13%
68
Neutral
Simon Property3.17%$1.14M$65.35B26.99%
70
Outperform
Bank of New York Mellon3.12%$1.12M$92.01B70.41%
75
Outperform

PFI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
55.09
Positive
100DMA
56.66
Positive
200DMA
56.45
Positive
Market Momentum
MACD
0.92
Positive
RSI
60.93
Neutral
STOCH
41.39
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PFI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 57.17, equal to the 50-day MA of 55.09, and equal to the 200-day MA of 56.45, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFI.

PFI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$33.71M0.60%
72
Outperform
$77.40M0.60%
72
Outperform
$54.07M0.32%
65
Neutral
$34.24M12.44%
72
Outperform
$24.83M0.29%
69
Neutral
$13.12M0.44%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PFI
Invesco DWA Financial Momentum ETF
58.10
4.95
9.31%
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.
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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