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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 by several strong financial names showing healthy performance and positive outlooks. Standout holdings like Sezzle, Victory Capital, and Principal Financial support the fund with robust financial results, constructive earnings call sentiment, and generally favorable valuations or momentum. The main risk is that many holdings operate in the same financial sector and some, such as Enova and WisdomTree, carry higher leverage or signs of overbought or bearish technical trends, which can add volatility.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and over the past few months, showing positive momentum.
Top Holdings with Strong Momentum
Several of the largest positions, including well-known financial firms and fast-growing names, have shown strong year-to-date performance that supports the fund’s returns.
Focused Exposure to Financials
The fund’s heavy tilt toward financial and related real estate companies gives investors targeted access to a sector that has recently been performing well.
Negative Factors
High Sector Concentration
With most assets in financials and a smaller slice in real estate, the ETF is heavily exposed to just a few related sectors, increasing the impact of any downturn there.
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.
Above-Average 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 staying with investors.

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 companies whose stock prices have been rising strongly. It holds a mix of banks, insurance firms, investment companies, and some real estate businesses. Well-known names inside the fund include JPMorgan Chase and Morgan Stanley. An investor might choose this ETF to seek growth from leading financial stocks while getting diversification across many firms in the sector. However, because it is heavily focused on financial companies, its value can go up and down sharply with changes in the financial sector and overall 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 like JPMorgan and Morgan Stanley providing a steady backbone as they grind higher on solid earnings and digital initiatives. The real spark, though, comes from fast-moving names such as Enova, Victory Capital, and WisdomTree, whose rising share prices are giving the fund its momentum flavor. Interactive Brokers is more mixed, with strong business trends but a stock that’s losing a bit of steam. Real estate exposure via Simon Property adds diversification, but financials clearly run the show here.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Enova International4.59%$2.72M$6.31B152.72%
71
Outperform
JPMorgan Chase4.30%$2.56M$940.11B21.57%
72
Outperform
Victory Capital Holdings3.91%$2.32M$6.16B48.25%
80
Outperform
Interactive Brokers3.74%$2.22M$40.31B38.33%
75
Outperform
Morgan Stanley3.54%$2.10M$331.32B51.28%
76
Outperform
State Street3.52%$2.09M$50.60B69.59%
75
Outperform
Sezzle Inc.3.41%$2.03M$5.22B7.46%
80
Outperform
Simon Property3.31%$1.96M$74.73B42.75%
70
Outperform
Principal Financial3.28%$1.95M$24.40B50.54%
76
Outperform
Bank of New York Mellon3.25%$1.93M$107.13B56.63%
75
Outperform

PFI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
60.70
Positive
100DMA
58.19
Positive
200DMA
57.46
Positive
Market Momentum
MACD
RSI
STOCH
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 62.41, equal to the 50-day MA of 60.70, and equal to the 200-day MA of 57.46, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$59.25M0.60%
72
Outperform
$93.74M0.60%
70
Outperform
$51.78M1.24%
66
Neutral
$33.82M12.44%
72
Outperform
$27.53M0.29%
69
Neutral
$17.57M0.44%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PFI
Invesco DWA Financial Momentum ETF
62.59
7.42
13.45%
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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