IDMO is a momentum ETF that seeks to represent developed market stocks excluding the U.S. In my opinion, it interfaces well within a diversified portfolio; almost 50% of the portfolio is in financials, which is an anomaly compared to classic global ETFs. It seems to have had competitive performance compared to other ETFs such as EFA and other ex. US ETFs.
The momentum factor is helping to propel strength in international equities. So defense spending, especially in Europe, could keep momentum on the side of the Invesco S&P International Developed Momentum ETF (IDMO).
Investors enjoying the pairing of domestic stocks and the momentum factor are likely familiar with some related ETFs. This includes the Invesco S&P 500 Momentum ETF (SPMO).
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The company in question is a fund that commits a significant portion of its assets, specifically at least 90%, to securities that are part of the underlying index it seeks to emulate. This underlying index is meticulously compiled, maintained, and calculated by the index provider, adhering to strict guidelines and mandated procedures. The fund’s focus is on constituents of the S&P World Ex-U.S. Index, indicating its investment strategy is oriented towards international markets, excluding the United States. This strategic approach allows investors an opportunity to diversify their portfolios internationally, tapping into potential growth in foreign markets.
This product is designed for investors looking to achieve broad exposure to international markets excluding the United States. By investing at least 90% of its assets in securities that are part of the underlying index, the fund seeks to provide returns that closely replicate the performance of the S&P World Ex-U.S. Index. This strategy encompasses a wide range of sectors and industries, offering a diversified investment option for those looking to invest outside the U.S. equity market.
The process of compiling, maintaining, and calculating the underlying index is carried out with strict adherence to the established guidelines and procedures by the index provider. This adherence ensures that the investment product accurately reflects the composition and performance of the underlying index, thereby aiming to minimize tracking error. It provides an additional layer of transparency and reliability for investors, knowing that their investments are managed in strict accordance with the index's defined parameters.