PIZ: INVESCO DORSEY WRIGHT DEVELOPED MARKETS MOMENTUM ETF
Understanding the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)
The Invesco Dorsey Wright Developed Markets Momentum ETF (ticker: PIZ) is designed to invest in stocks from developed markets that are showing strong "momentum." This means the fund looks for companies that have been trending upward in price.
What this ETF is trying to do
PIZ focuses on developed markets around the world. Instead of just buying everything, it uses a momentum strategy to pick stocks that are currently performing well. This ETF holds 116 different companies. Because the list provided is partial, we can only see the largest holdings, which include:
• Constellation Software Inc (3.46%)
• BDRBF (2.77%)
• Toromont Industries Ltd (2.61%)
• Belimo Holding AG (2.52%)
• Lion Finance Group PLC (2.48%)
• The Toronto-Dominion Bank (2.48%)
• HD Hyundai Electric (2.31%)
• Royal Bank of Canada (2.29%)
• Investor AB Class B (2.22%)
• Swedbank AB Class A (1.95%)
Please note that holdings can change over time.
What the numbers show
When looking at how PIZ has performed, it is important to distinguish between price return (just the change in share price) and total return (the change in price plus any cash distributions received).
• Year-to-Date (YTD): The price return is approximately 4.04%, while the total return is approximately 5.41%.
• One-Year: The price return was approximately 6.52%, and the total return was approximately 8.37%.
• Three-Year: The price return was approximately 79.94%, and the total return was approximately 89.31%.
• Five-Year: The five-year total return was approximately 51.21%.
An estimated price from roughly one year ago was $47.84, compared to the current price of $50.96.
Income and distribution explanation
PIZ provides cash distributions to investors. The distribution yield is approximately 1.83%. This number describes 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 includes both the price changes and these cash payments.
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.
Pros
• The fund has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurements suggest there has not been significant price deterioration.
Cons
• The distribution yield is relatively low at approximately 1.83%.
• As a momentum-based fund, it focuses on specific market trends which can change.
Beginner takeaway
PIZ is a momentum-focused ETF that has recently seen growth in both its share price and its total return. While it pays a small amount of regular income, the main driver of its recent performance has been the increase in share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | CONSTELLATION SOFTWARE INC | CNSWF | 3.46% |
| 2 | n/a | BDRBF | 2.77% |
| 3 | TOROMONT INDUSTRIES LTD | TMTNF | 2.61% |
| 4 | BELIMO HOLDING AG | n/a | 2.52% |
| 5 | LION FINANCE GROUP PLC | n/a | 2.48% |
| 6 | THE TORONTO-DOMINION BANK | n/a | 2.48% |
| 7 | HD HYUNDAI ELECTRIC | n/a | 2.31% |
| 8 | ROYAL BANK OF CANADA | n/a | 2.29% |
| 9 | INVESTOR AB CLASS B | n/a | 2.22% |
| 10 | SWEDBANK AB CLASS A | n/a | 1.95% |