(RWK) Invesco S&P MidCap 400 - Ratings and Ratios

The Invesco S&P MidCap400 Revenue ETF (RWK) is an exchange-traded fund that tracks the performance of mid-cap companies in the U.S. equity market with a focus on revenue-producing securities. By investing at least 90% of its assets in the constituent securities of the underlying index, the fund provides a targeted exposure to the mid-cap segment with a tilt towards companies with positive revenue generation.

The underlying index is derived from the S&P MidCap400 Index, comprising approximately 400 mid-capitalization companies. The selection criteria emphasize common stocks of companies with significant revenue, effectively capturing the performance of the mid-cap universe with a revenue-positive bias. This approach allows investors to tap into the growth potential of mid-cap companies while mitigating potential risks associated with companies with weaker revenue profiles.

From a technical analysis perspective, the current price of RWK is $114.06, slightly above its 20-day Simple Moving Average (SMA) of $113.27, indicating a potential bullish trend. The 50-day SMA at $109.55 is trending upwards, further supporting the bullish outlook. However, the 200-day SMA at $114.40 is slightly above the current price, potentially acting as a resistance level. The Average True Range (ATR) of 1.66 (1.45%) suggests moderate volatility.

Combining technical and fundamental insights, a forecast for RWK can be derived. With the AUM of $802.02M USD, the fund has a substantial presence in the market. Considering the current technical indicators and the underlying indexs focus on revenue-producing securities, a potential price target for RWK could be in the range of $120-$125, representing a 5-10% increase from the current price. This forecast is contingent upon the continued positive performance of the constituent securities and the overall mid-cap market. However, a break below the 50-day SMA could signal a reversal, potentially targeting the 52-week low of $94.80.