DWAS

📎 Investment Objective

The Invesco Dorsey Wright SmallCap Momentum ETF (DWAS) seeks to track the investment results of an index that is designed to provide exposure to small-cap U.S. companies exhibiting strong relative strength or 'momentum'.

✨ Key Features

• Focuses on small-cap U.S. stocks with strong price momentum
• Uses a rules-based index methodology to identify and weight the most promising small-cap stocks
• Rebalances and reconstitutes the portfolio on a quarterly basis to maintain exposure to the strongest small-cap momentum names
• Relatively low expense ratio compared to actively managed small-cap funds

⚠️ Primary Risks

• Increased volatility and risk compared to the broader small-cap market due to the momentum-based strategy
• Potential for higher turnover and trading costs from the frequent portfolio rebalancing
• Concentration risk as the fund is focused on a relatively narrow slice of the small-cap universe
• Liquidity risk for some of the smaller, less-traded holdings in the portfolio

👤 Best For

DWAS may be suitable for investors seeking exposure to small-cap U.S. stocks with a focus on relative strength and momentum. The fund's strategy could appeal to investors with a higher risk tolerance who are comfortable with the increased volatility that can come with a momentum-based approach. As with any small-cap fund, this ETF may be best utilized as a satellite holding within a diversified portfolio.