(PDN) Invesco FTSE RAFI Developed - Ratings and Ratios

The Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) is an exchange-traded fund that tracks the performance of small and mid-sized companies in developed markets outside the United States. The fund invests at least 90% of its assets in the securities that comprise its underlying index, which is comprised of approximately 1,500 common stocks.

The index is constructed using a fundamental weighting methodology, which considers four key measures of company size: book value plus intangibles, adjusted cash flow, adjusted sales, and dividend plus buybacks. This approach allows the fund to capture the performance of companies with strong fundamentals, potentially reducing the impact of market volatility.

From a performance perspective, key metrics to evaluate PDN include its tracking error, expense ratio, and dividend yield. A low tracking error indicates that the fund is effectively replicating its underlying index, while a competitive expense ratio is essential for long-term returns. Additionally, the dividend yield can provide insight into the funds income generation potential.

To further assess PDNs investment potential, its essential to examine its sector allocation, geographic distribution, and holdings turnover. A diversified sector allocation and geographic distribution can help mitigate risk, while a low holdings turnover may indicate a more stable investment approach. By analyzing these metrics, investors can gain a deeper understanding of PDNs underlying characteristics and make more informed investment decisions.