(PIE) Invesco DWA Emerging - Ratings and Ratios

The Invesco DWA Emerging Markets Momentum ETF (NASDAQ:PIE) is an exchange-traded fund that focuses on capturing momentum in emerging markets by investing at least 90% of its assets in the securities that make up its underlying index. This index is designed to track the performance of large-cap companies in emerging markets, providing a diversified exposure to these economies.

The funds underlying strategy is centered around momentum investing, which means it targets companies that have shown high relative returns within their sector or the broader emerging markets universe. By concentrating on large-cap companies, the fund aims to balance growth potential with relative stability, as larger companies tend to be less volatile than their smaller counterparts.

From a technical analysis perspective, the current price of $19.32 indicates a potential buying opportunity given its position relative to key moving averages. The fund is above its 20-day and 50-day Simple Moving Averages (SMA20: $18.57, SMA50: $18.27), suggesting an upward trend. However, its slightly below its 200-day SMA ($19.35), indicating that long-term trend is not strongly established. The Average True Range (ATR) of 0.47, or 2.45%, suggests moderate volatility, which is relatively contained and might be expected in a diversified emerging markets ETF.

Considering the fundamental aspect, the funds Assets Under Management (AUM) stand at $87.52 million. While not massive, this size is sufficient to provide liquidity and suggests a dedicated investor base. Emerging markets can be volatile, but the funds diversification across various countries and sectors helps mitigate some of this risk.

Forecasting the funds performance involves analyzing both technical and fundamental data. Given the current technical indicators, if the fund can break through and sustain a position above its 200-day SMA ($19.35), it could signal a strong uptrend, potentially targeting the 52-week high of $21.66. Conversely, a drop below the SMA50 ($18.27) could indicate a downturn, with the 52-week low of $15.45 as a potential target. Fundamentally, the growth prospects of emerging markets, coupled with the funds diversified and momentum-driven strategy, could support long-term growth. However, investors should be cautious of global economic shifts and emerging markets inherent volatility.

To proceed, investors should closely monitor the funds price action relative to its moving averages and watch for any significant changes in AUM or the underlying index composition, as these could signal shifts in the funds performance trajectory.