PIE: INVESCO DORSEY WRIGHT EMERGING MARKETS MOMENTUM ETF
Understanding the Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)
The Invesco Dorsey Wright Emerging Markets Momentum ETF, trading under the ticker PIE, is designed to follow a momentum strategy within emerging markets. This means the fund looks for stocks that have shown strong upward trends.
What this ETF is trying to do
PIE focuses on emerging markets by investing in companies that are currently showing "momentum." The fund holds a total of 111 different holdings. Because the list provided is partial, we can only see the largest positions, known as Top Holdings. These include companies like Wanguo Gold Group Ltd (3%) and Topco Scientific Co Ltd (2.95%). Please note that holdings can change over time.
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and distributions).
• Year-to-Date (YTD): The price return is approximately 50.98%, while the total return is approximately 53.23%.
• One-Year: The price return was approximately 44.77%, and the total return was approximately 48.39%.
• Three-Year: The price return was approximately 92.46%, while the total return was approximately 104.99%.
An estimated price from roughly one year ago was $24.65, compared to the current price of $35.69.
Income and distribution explanation
PIE provides cash distributions to investors. The distribution yield is approximately 2.08%. This number represents the cash paid out relative to the ETF's price. The fund usually pays these distributions quarterly, with 4 payments made over the last 12 months. It is important to remember that a distribution yield is not the same as total return; total return tells a more complete story of how much value was gained.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Strong Momentum: The fund has shown significant positive price and total returns over the one-year and three-year periods.
• Income Generation: The fund provides a regular distribution yield with an income rating grade of "A."
Cons
• Market Risk: As an emerging markets fund, it is subject to the volatility of developing economies.
• Partial Data: The provided list of holdings is only a partial view of the full portfolio.
Beginner takeaway
PIE is an ETF that seeks to capture growth in emerging markets through momentum. While it offers both share-price growth and cash distributions, investors should always look at the total return to see the full picture of performance. Currently, the data shows no signs of price erosion.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WANGUO GOLD GROUP LTD | n/a | 3.00% |
| 2 | TOPCO SCIENTIFIC CO LTD | n/a | 2.95% |
| 3 | n/a | n/a | 2.79% |
| 4 | UNITED INTEGRATED SERVICES CO LTD | n/a | 2.79% |
| 5 | SIGURD MICROELECTRONICS CORP | n/a | 2.67% |
| 6 | MARKETECH INTERNATIONAL CORP | n/a | 2.63% |
| 7 | n/a | n/a | 2.43% |
| 8 | NAN YA PRINTED CIRCUIT BOARD CORP | n/a | 2.24% |
| 9 | UNIMICRON TECHNOLOGY CORP | n/a | 2.09% |
| 10 | KINSUS INTERCONNECT TECHNOLOGY CORP | n/a | 2.07% |