Invesco Dynamic Software
ALTAR
Score™
3.3% info Recommen-
dation
AVOID
2019E    2020E
P/E
ratio
33.3x P/Sales
ratio
6.2x
P/BV
ratio
5.8x Div.
yield
0.4%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The Invesco Dynamic Software Portfolio ETF uses a quantitative model to choose US software companies across the market cap spectrum.

FUND BASICS
Category US Equities
Fund Sponsor Invesco PowerShares
Website www.powershares.com
Inception date Jun 23, 2005
Assets (mns) $486
Currency USD
Expense ratio 58 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian BNY Mellon
Weighting Tiered
Index replication
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 30
Wgt avg mkt cap (mns) $83,558
Large cap (>$10bn) 50.8%
Mid cap ($2-10bn) 25.3%
Small cap (<$2bn) 23.9%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
VMWARE INC-CLASS A 6.1 %
ORACLE CORP 5.5 %
MICROSOFT CORP 5.3 %
CADENCE DESIGN SYS INC 4.9 %
SYNOPSYS INC 4.9 %
SERVICENOW INC 4.7 %
VEEVA SYSTEMS INC-CLASS A 4.3 %
ZOOM VIDEO COMMUNICATIONS, INC. CL 3.9 %
SAPIENS INTERNATIONAL CORP 3.3 %
INTERDIGITAL INC 3.3 %
Total 46.3 %

TOP COUNTRY EXPOSURE
UNITED STATES 93.9 %
ISRAEL 6.1 %









HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
27.5% 23.9% 20.3% 17.4% 13.7%

Market Correlations
versus... Beta R-squared
S&P500 1.09 55%
MSCI EAFE 0.87 30%
MSCI Emg. Mkts. 0.69 31%

Technical Indicators
Recent close $97.29
30d moving avg. $93.90
Annualized volatility 17.7%
Short interest (ETF) 1.0%
Short interest (Underlying) 5.2%
Relative strength (RSI) 59

Liquidity measures
Avg. volume (thou.) 54
Turnover 1.1%
Bid/Ask (% of price) 0.11%
ADV underlying (mns) $5,833

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco Dynamic Software ETF based on the alternatives' overlap in portfolio holdings with PSJ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: PSJ Expense: 58 bp ALTAR Score™: 3.3%


ALTERNATIVE ETFs BASED ON OVERLAP WITH PSJ
Ticker Fund
Name
Overlap1
vs PSJ
(%)
Expense
ratio
(bp)
Savings
vs PSJ
(bp)
ALTAR
Score™
(%)
ALTAR
vs PSJ
(%)
IGV iShares N. American Tech-Software 27.1 46 12 3.2 -0.1
SKYY First Trust Cloud Computing 24.4 60 -2 2.5 -0.9
PXQ Invesco Dynamic Networking 19.5 63 -5 4.1 +0.8
PTF Invesco DWA Technology Momentum 18.1 60 -2 1.5 -1.8
FNG AdvisorShares New Tech & Media ETF 18.0 86 -28 1.9 -1.4
CIBR First Trust NASDAQ Cybersecurity 16.6 60 -2 3.5 +0.2
TCLD Tortoise Cloud Infrastructure Fund 16.1 40 18 5.0 +1.7
XSW SPDR S&P Software & Services 14.9 35 23 4.2 +0.9
JHMT John Hancock Multifactor Technology 14.6 40 18 6.0 +2.7
QMOM MomentumShares U.S. Quantitative Momentum 14.2 49 9 2.6 -0.7
CLOU Global X Cloud Computing 13.5 68 -10 1.3 -2.0
SYG SPDR MFS Systematic Growth Equity 12.8 61 -3 5.8 +2.5
BKCH AdvisorShares Sabretooth ETF 12.8 85 -27 0.0 -3.3
AIQ Global X Future Analytics Tech 12.4 68 -10 4.6 +1.3
TDIV First Trust NASDAQ Technology Dividend 11.8 50 8 6.6 +3.3
IHAK iShares Cybersecurity & Tech 11.8 47 11 3.1 -0.2
GDAT Goldman Sachs Motif Data-Driven World 11.3 50 8 5.7 +2.4
KOIN Innovation Shares NextGen Protocol 11.2 95 -37 4.7 +1.4
FXL First Trust Technology Alphadex 11.2 63 -5 5.7 +2.4
HACK ETFMG Prime Cyber Security 11.2 60 -2 3.5 +0.2

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Invesco Dynamic Software
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 19.3 %
Divided by: Fwd. P/BV 5.0 x
Less: Expense ratio 58 bp
Equals: ALTAR Score 3.3 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.48 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.