(DWAS) Invesco DWA SmallCap - Ratings and Ratios

The Invesco DWA SmallCap Momentum ETF (DWAS) is an exchange-traded fund that tracks a momentum-based index comprising approximately 200 small-cap securities. The underlying index is derived from the NASDAQ US Benchmark Index, focusing on the 1,001 to 3,000 ranked securities by market capitalization, thus targeting the smaller end of the US market capitalization spectrum.

The fund adheres to a straightforward investment strategy, allocating at least 90% of its total assets to the securities that make up the underlying index. This approach ensures that the ETFs performance closely mirrors that of its benchmark, providing investors with a diversified portfolio of small-cap stocks that have demonstrated momentum.

DWAS is categorized under the Small Blend ETF category, indicating its investment focus on a broad spectrum of small-cap stocks without a pronounced bias towards growth or value styles. The fund is managed by Invesco, a well-established asset management firm with a global presence.

Analyzing the available technical data, the ETFs recent price movements suggest a potential rebound opportunity. The last price is $78.09, with the 20-day Simple Moving Average (SMA) at $75.23 and the 50-day SMA at $77.40. Given that the current price is above both the 20-day and 50-day SMAs, it indicates a short-term bullish trend. However, the 200-day SMA stands at $88.81, suggesting that the ETF is currently trading below its longer-term average, potentially signaling a longer-term bearish trend or a correction phase.

Considering the Average True Range (ATR) of 2.55, equivalent to a 3.27% daily volatility, investors should be prepared for potential price swings. The 52-week high and low range of $103.79 to $68.68 further underscores the volatility and the potential for significant price movements.

From a fundamental perspective, the Assets Under Management (AUM) stand at $617.94 million, indicating a moderate level of investor interest and capital commitment to the fund.

Forecasting the ETFs future performance involves synthesizing both technical and fundamental data. Given the current prices position relative to its moving averages and considering the ATR, a cautious outlook is warranted. If the ETF can sustain its position above the 20-day and 50-day SMAs, it may signal a short-term uptrend. However, the longer-term trend, as indicated by the 200-day SMA, remains a concern. Therefore, a potential forecast could involve a short-term trading strategy that capitalizes on the momentum indicated by the short-term SMAs, while maintaining a watchful eye on the longer-term trend and overall market conditions.

In the context of the broader market, DWAS offers a targeted exposure to small-cap stocks with a momentum tilt, which can be an attractive strategy during certain market phases. Investors should, however, be aware of the inherent risks associated with small-cap investing, including higher volatility and potential liquidity issues.