PDP: Challenging Times For This Momentum-Focused ETF
The Invesco Dorsey Wright Momentum ETF (PDP) has a portfolio tilted to high-growth stocks, but with high volatility and historical underperformance compared to peers and the Russell 1000 index. PDP's portfolio is heavily weighted towards technology, industrials, and financial services, with limited exposure to defensive sectors like healthcare and utilities. PDP's high valuation and historical underperformance, coupled with high volatility and low dividend yield, make it less attractive compared to other momentum funds.
PDP: Underperforming Momentum ETF
Invesco Dorsey Wright Momentum ETF holds about 100 stocks, focusing on superior price relative strength. PDP is diversified across sectors and holdings, and has high-growth metrics. PDP has underperformed the Russell 1000 index since 2007 and several momentum ETFs since 2018.
