Share-split context: A forward split was recorded on Jul 17, 2023 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: INVESCO DORSEY WRIGHT TECHNOLOGY MOMENTUM ETF (PTF)

What this ETF is trying to do

The INVESCO DORSEY WRIGHT TECHNOLOGY MOMENTUM ETF (ticker: PTF) is an exchange-traded fund that focuses on the technology sector. It looks for companies that show "momentum," which generally means stocks that have been moving in a certain direction.

What the numbers show

The current price of PTF is $112.04. Because this ETF has a history of "forward splits," we look at split-adjusted returns to understand its performance. In a forward split, one old share becomes multiple new shares. This makes the price per share look lower, but it does not change how much of the fund you own.

Here is how the fund has performed:

• Year-to-Date (YTD) Price Return: Approximately 46.49%

• Year-to-Date (YTD) Total Return: Approximately 46.49%

• One-Year Price Return: Approximately 41.59%

• One-Year Total Return: Approximately 41.59%

• Three-Year Price Return: Approximately 153.09%

• Three-Year Total Return: Approximately 153.70%

Note that "price return" only tracks the change in the share price, while "total return" includes the impact of distributions. In this case, the two numbers are very similar.

Income and distribution explanation

Some investors look for ETFs that pay out regular cash, known as distributions. For PTF, the distribution yield is 0%. No distributions were detected over the last 12 months. This means the fund's returns have come from changes in the share price rather than cash payments to investors.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. StockValueFinder uses an "erosion-risk score" to help monitor this. For PTF, the erosion score is 100, and the label shows "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in this portfolio (note that this is a partial list):

• Micron Technology Inc (5.61%)

• AXT Inc (5.36%)

• Sandisk Corp Ordinary Shares (5.36%)

• Seagate Technology Holdings PLC (4.15%)

• Dell Technologies Inc (3.74%)

• KLA Corp (3.68%)

• Semtech Corp (3.68%)

• Western Digital Corp (3.66%)

• Advanced Micro Devices Inc (3.57%)

• Aehr Test Systems (3.32%)

Pros

• The fund has shown strong positive price returns over the last year and three years.

• It shows no signs of price erosion according to the current erosion-risk score.

Cons

• The fund does not currently provide cash distributions (income) to investors.

• Because it focuses on technology momentum, its value is tied to the performance of that specific sector.

Beginner takeaway

PTF is a technology-focused ETF that has seen significant price growth recently. While it has not paid out cash distributions to investors, its total return has been driven by the increase in its share price. Always remember that past performance does not guarantee what will happen in the future.