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 driven by high-quality financial leaders like American Express, Nasdaq, and Morgan Stanley, which show strong financial performance, positive earnings sentiment, and strategic growth initiatives in areas like premium products, AI, and digital innovation. The fund is somewhat held back by holdings such as Lemonade, where profitability and valuation concerns add risk, and overall investors should note that the ETF is heavily concentrated in the financial sector, making it sensitive to downturns in that industry.

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)

AUM56.59M

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. Volume4,273

30 Day Avg. Volume3,347

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

69.70

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 a pure play on U.S. financials, with a dash of real estate, and its story is being written by big banks and niche innovators. Goldman Sachs and Morgan Stanley have been rising, giving the fund a solid lift, while Interactive Brokers and Nasdaq add steady momentum from the trading and market-infrastructure side. On the flip side, American Express, JPMorgan, and Capital One are losing steam lately, and high-flyer Lemonade has been volatile, occasionally tugging performance the wrong way. Overall, the ETF is clearly concentrated in financial heavyweights with a momentum tilt.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JPM	JPMorgan Chase	5.15%	$2.89M	$866.44B	16.94%	72 Outperform
IBKR	Interactive Brokers	4.75%	$2.67M	$34.38B	36.26%	75 Outperform
LMND	Lemonade	4.24%	$2.38M	$5.35B	124.97%	60 Neutral
AXP	American Express	3.86%	$2.17M	$249.38B	17.38%	80 Outperform
MS	Morgan Stanley	3.60%	$2.02M	$282.72B	33.00%	76 Outperform
RJF	Raymond James Financial	3.59%	$2.02M	$31.23B	7.80%	76 Outperform
GS	Goldman Sachs Group	3.52%	$1.98M	$284.63B	45.40%	73 Outperform
NDAQ	Nasdaq	3.31%	$1.86M	$47.11B	7.98%	78 Outperform
WELL	Welltower	3.05%	$1.71M	$137.84B	34.64%	77 Outperform
SPG	Simon Property	2.99%	$1.68M	$64.09B	6.90%	70 Outperform

PFI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

58.50

Negative

100DMA

57.46

Negative

200DMA

56.49

Positive

Market Momentum

MACD

-0.17

Positive

RSI

42.44

Neutral

STOCH

53.24

Neutral

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 58.48, equal to the 50-day MA of 58.50, and equal to the 200-day MA of 56.49, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 53.24 is Neutral, 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	―	―	$56.59M	0.60%	―
QABA	―	―	$83.15M	0.60%	―
KBWR	―	―	$53.96M	0.35%	―
GABF	―	―	$50.42M	0.32%	―
PSCF	―	―	$24.71M	0.29%	―
TFNS	―	―	$12.35M	0.44%	―

Performance Comparison

PFI

Invesco DWA Financial Momentum ETF

57.23

-3.39

-5.59%

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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