Should You Invest in the Invesco Dorsey Wright Healthcare Momentum ETF (PTH)?
If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Invesco Dorsey Wright Healthcare Momentum ETF (PTH), a passively managed exchange traded fund launched on October 12, 2006.
PTH: A Health Care Headache Worth Selling
PTH is comprised of 30+ Health Care stocks selected based on a proprietary momentum-based model. Its expense ratio is 0.60% and the ETF has $115 million in assets under management. The strategy relies on technical analysis, but that's not necessarily the issue. Instead, PTH reconstitutes quarterly, forcing managers to wait to buy stocks only after they've made their massive gains. PTH's current holdings illustrate this point perfectly. Although they've gained 51% over the last six months, the ETF itself has declined by 12% over the same period.
