(PFI) Invesco DWA Financial - Ratings and Ratios

The Invesco DWA Financial Momentum ETF (NASDAQ:PFI) is an exchange-traded fund that focuses on the financial sector, tracking an underlying index comprising at least 30 securities of companies with strong relative strength and momentum characteristics.

The funds investment strategy is centered around capturing the momentum in the financial sector by investing at least 90% of its total assets in the securities that make up the underlying index. This approach is designed to capitalize on the growth potential of financial companies that are exhibiting powerful relative strength.

By concentrating on the financial sector, PFI provides investors with a targeted exposure to this specific segment of the market. The underlying index is constructed to identify companies with high momentum, which can be an indicator of future performance. As a result, PFI can be an attractive option for investors seeking to tap into the growth potential of the financial sector.

Analyzing the available data, we can observe that the ETF has been exhibiting a positive trend, with its short-term and long-term moving averages indicating a potential for continued growth. The current price is above its 20-day and 50-day simple moving averages (SMA20 and SMA50), suggesting a bullish trend. However, it is below its 52-week high, indicating potential for further upside if the momentum continues.

Using a combination of technical and fundamental analysis, we can forecast that PFI may continue to perform well if the financial sector maintains its momentum. With an AUM of $62.92M USD, the fund has a reasonable size to be considered for investment. Based on the current technical indicators, a potential target price could be around $60, representing a 6.5% increase from the current price. However, a drop below the SMA50 at $52.48 could indicate a reversal in the trend, and investors should be cautious of potential risks.

To confirm this forecast, it is essential to monitor the ETFs performance in relation to its underlying index and the overall financial sector, as well as keep an eye on any changes in market conditions that could impact the funds momentum.