PFI - ETF AI Analysis

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Invesco DWA Financial Momentum ETF (PFI)

Rating:71Outperform

Price Target:―

The Invesco DWA Financial Momentum ETF (PFI) benefits from strong contributions by holdings like American Express (AXP), which stands out due to its robust revenue growth, profitability, and strategic focus on premium products and international markets. Mastercard (MA) also adds positively with its strong financial performance and strategic expansions, though its potential overvaluation slightly tempers its impact. However, weaker holdings like Robinhood (HOOD), which faces operational challenges and valuation concerns, and SoFi (SOFI), with cash flow issues and high valuation, may have weighed on the overall rating. A key risk factor for the ETF is its concentration in the financial sector, which could expose it to sector-specific volatility.

Positive Factors

Strong Top Holdings

Several key holdings, such as Robinhood and SoFi, have delivered strong year-to-date performance, supporting the ETF's overall returns.

Focused Sector Exposure

The ETF's heavy allocation to the financial sector allows investors to benefit from targeted growth in this industry.

Reasonable Expense Ratio

The ETF's expense ratio is competitive for a niche fund, helping investors keep more of their returns.

Negative Factors

High Sector Concentration

With over 85% of assets in the financial sector, the ETF is highly exposed to risks specific to this industry.

Weak Recent Performance

The ETF has struggled in the short term, with negative returns over the past month and year-to-date.

Limited Geographic Diversification

The fund is almost entirely focused on U.S. companies, offering little exposure to international markets.

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

AUM57.47M

RegionNorth America

Expense Ratio0.60%

Beta1.08

IssuerInvesco

Inception DateOct 12, 2006

Dividend Yield0.66%

Asset ClassEquity

Index TrackedDorsey Wright Financials Tech Leaders TR

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,206

30 Day Avg. Volume2,780

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

65.50

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 an investment fund that focuses on companies in the financial sector, such as banks, insurance firms, and real estate businesses, that show strong growth and price momentum. It follows the Dorsey Wright Financials Tech Leaders Index, which uses a strategy to identify financial stocks with upward trends. Some well-known companies in this ETF include Mastercard and JPMorgan Chase. Investors might consider PFI for potential growth and diversification within the financial industry. However, since it is heavily focused on financial stocks, its performance can be impacted by changes in the economy or interest rates.

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

The Invesco DWA Financial Momentum ETF leans heavily into the financial sector, with names like JPMorgan Chase and American Express providing steady growth thanks to strong earnings and strategic initiatives. Robinhood and SoFi are rising stars, benefiting from robust performance and investor optimism, while Ares Management and Blackstone are lagging, weighed down by valuation concerns and market corrections. With a U.S.-centric focus and a clear tilt toward financials, this fund is riding the wave of momentum-driven stocks, though its exposure to a few underperformers may hold back broader gains.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JPM	JPMorgan Chase	5.17%	$2.95M	$896.14B	32.87%	72 Outperform
LMND	Lemonade	5.04%	$2.88M	$5.95B	158.86%	60 Neutral
IBKR	Interactive Brokers	4.29%	$2.45M	$31.38B	54.51%	75 Outperform
NDAQ	Nasdaq	3.92%	$2.24M	$56.09B	30.51%	78 Outperform
RJF	Raymond James Financial	3.81%	$2.18M	$33.12B	10.82%	76 Outperform
AXP	American Express	3.76%	$2.15M	$258.74B	21.06%	80 Outperform
MS	Morgan Stanley	3.71%	$2.12M	$296.12B	50.47%	76 Outperform
GS	Goldman Sachs Group	3.46%	$1.98M	$281.63B	68.67%	73 Outperform
COF	Capital One Financial	2.85%	$1.63M	$158.42B	29.32%	71 Outperform
WFC	Wells Fargo	2.84%	$1.62M	$301.20B	34.64%	80 Outperform

PFI Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

57.30

Positive

100DMA

57.12

Positive

200DMA

55.67

Positive

Market Momentum

MACD

0.62

Positive

RSI

57.01

Neutral

STOCH

80.15

Negative

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 58.85, equal to the 50-day MA of 57.30, and equal to the 200-day MA of 55.67, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 80.15 is Negative, 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
PFI	―	―	$57.47M	0.60%	―
QABA	―	―	$79.58M	0.60%	―
KBWR	―	―	$51.41M	0.35%	―
GABF	―	―	$40.44M	0.32%	―
PSCF	―	―	$20.82M	0.29%	―
TFNS	―	―	$12.63M	0.44%	―

Performance Comparison

PFI

Invesco DWA Financial Momentum ETF

59.39

1.76

3.05%

QABA

First Trust NASDAQ ABA Community Bank Index Fund

―

KBWR

Invesco KBW Regional Banking ETF

―

GABF

Gabelli Financial Services Opportunities 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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