A sound investment process and strong management team underpin Invesco Dividend Achievers™ ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in liquidity exposure and an overweight in quality exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a high quality exposure is rooted in holding stocks that are consistently profitable, growing, and have solid balance sheets. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Apple

Broadcom

JPMorgan Chase & Co

Exxon Mobil

Walmart

UnitedHealth Group

Visa

Mastercard

Procter & Gamble

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Invesco Dividend Achievers™ ETF earns an Above Average Process Pillar rating. 

The leading factor in the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 42%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 This strategy has more exposure to the Growth factor than the Large Value Morningstar Category average. But in terms of size exposure, it is similar to the average. Looking at additional factor exposure, this strategy consistently held some companies with relatively lower trading volume compared with Morningstar Category peers in the last few years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In the latest month, the strategy was also less exposed to the Liquidity factor compared with Morningstar Category peers. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. Such holdings could cause it to trail peers during economic booms, but help it better endure busts. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has an underweight bias to the volatility factor, meaning investing in stocks that have a lower standard deviation of returns. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In recent months, the strategy also had less Volatility factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and consumer defensive relative to the category average by 8.9 and 4.3 percentage points, respectively. The sectors with low exposure compared to category peers are communication services and energy, underweight the average by 3.9 and 3.7 percentage points of assets, respectively. The portfolio is composed of 402 holdings and invests 27.7% of assets in its top 10 holdings, similar to the category average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 8% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

Invesco Dividend Achievers™ ETF's strong equity team drives the strategy's Above Average People Pillar rating. There are four managers listed on the fund: Michael Jeanette, Peter Hubbard, Tony Seisser, Pratik Doshi. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of 144 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. This group has had relatively low management turnover, providing a stable environment and continuity for the strategies. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco Dividend Achievers ETF

PFM tracks a market-cap-weighted index of dividend-paying US companies that have increased their annual dividends.

PFM's portfolio has seen a few changes in the wake of the underlying index's reconstitution in March. With valuation being less of a concern assuming the new narrative dominates the markets, I am still mostly tepid on PFM, so the Hold rating is maintained. The factor story under the hood has not changed much, with the portfolio now being a bit more expensive while the weighted-average growth rates have weakened slightly.

PFM: Discussing The Impact Of Reconstitution

Invesco Dividend Achievers™ ETF offers exposure to dividend-paying companies with a history of increasing dividends. The PFM ETF's top holdings include Microsoft, Apple, UnitedHealth Group, Exxon Mobil, and JPMorgan Chase. PFM's sector composition is well-diversified, but it has a significant exposure to the Information Technology sector.

PFM: Good For Dividend Exposure Overall

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco Dividend Achievers ETF (PFM), a passively managed exchange traded fund launched on 09/15/2005.

Should Invesco Dividend Achievers ETF (PFM) Be on Your Investing Radar?

PFM focuses on publicly traded companies that depict a dividend growth quality. Some drawbacks are that the ETF has a high exposure to the Information Technology/Financials sectors and its expense ratio is high. Regardless, its performance has been relatively attractive and it has a solid distribution record.

PFM: A Decent Addition To Income Portfolios

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The U.S. market is in great shape as 2023 comes to a close, thanks mainly to a less-hawkish Fed, an Artificial Intelligence (AI) boom and dissipating global growth worries. This is how you can navigate the record high market.

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Value stocks perform better in a higher rate environment. Any show of economic resilience is likely to bring share prices down as the Fed will turn hawkish.

Buy 5 Large-Cap Value ETFs Amid Fed's Hawkish Pause

PFM is a nicely diversified dividend ETF, with a strategy based on an index requiring a 10-year dividend growth story as the bare minimum to qualify. Though not delivering much on the dividend yield front, the fund remains heavy in high-quality dividend stories. PFM has a portfolio with remarkable dividend consistency and safety credentials, but it notably lags on value.

PFM: Appreciate On Dividend Safety Front But Suboptimal Value Exposure, Worth Avoiding

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Tech stocks have seen a stupendous rally this year helped by compelling valuation, a less-hawkish Fed and Artificial Intelligence (AI) hype. But the gamechanger AI is not going to knock on the door overnight.

Is It Time for Rotation Into Broad ETFs From Tech-Heavy Ones?

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If you consider "winners" as stocks that go up, then you may be looking in the wrong place for good dividend stocks to buy. If owning stocks is a bit too much for you, you can always buy a dividend-focused mutual fund.

You Don't Have to Pick a Winner in Dividend Stocks -- Here's Why

Invesco Dividend Achievers™ ETF holds over 400 U.S. dividend-growth stocks. It is well diversified across sectors and holdings. It looks better than the benchmark regarding both valuation and quality metrics.

PFM: There Are Better Dividend Growth ETFs

Invesco Dividend Achievers ETF owns stocks that increased their dividends annually for 10 or more years. A long history of increasing dividends is a very attractive attribute for a stock if you are a dividend investor.

This Dividend-Focused ETF Is Not a Good Dividend Investment

PFM has struggled to perform well in a challenging economic environment, registering negative returns in 2022. The ETF's selection criteria of only investing in companies with at least 10 years of dividend growth may have allowed lower-quality stocks to slip into the portfolio.

PFM: Setting The Bar Too Low

PFM is a large-cap dividend growth ETF. Valuation ratios are average, but portfolio quality is good.

PFM: ETF With 5% Annualized Dividend Growth, But Sub-Par Return

Invesco S&P 500 High Dividend Low Volatility ETF

Economic outlooks have continued to darken as the year unfolds, leaving investors unsure and uneasy about if and where to move their money.

What Investors Need to Know About the Current Economic Landscape

Not much is working in equity markets in 2022, but among the clear sources of “less bad” are dividend stocks and the related exchange traded funds. High dividend stocks and ETFs are beating the broader market, but so are dividend growth funds.

PFM Pertinent for Dependable Dividend Growth

PFM's current fundamentals look attractive. It trades at 18.25x forward earnings, is well-diversified at the industry level, and is outperforming the S&P 500 Index by 6% YTD. The problem is that dozens of other dividend-focused ETFs are outperforming, too. PFM's 0.52% expense ratio, the ninth highest out of 64 in the category, doesn't help.

PFM: Fundamentals Looking Strong

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While the markets have been weighed down by uncertainty, investors could find some stability in dividend-themed exchange traded funds. Dividend payments have set another record in the second quarter, with S&P 500 companies paying out a record $140.6 billion in dividends over the last three months, the Wall Street Journal reported.

In an Unreliable Market, Dividend ETFs Remain a Steady Ballast

PFM's investment mandate is to track the NASDAQ U.S. Broad Dividend Achievers Index. To qualify for the cohort, a company must have no less than a 10-year regular dividend growth history. The article provides a detailed look at the valuation, quality, and dividend characteristics of the current version of the PFM portfolio.

PFM: Reassessing Valuation, Quality, And Dividend Credentials

Broader equity benchmarks are sliding through the first four months of 2022, and that could be a sign that investors may want to brace for more subdued returns going forward. In environments like that, investors can survive and thrive with dividend growth stocks.

Dividend Growth ETFs Are Ideal for This Environment

PFM tracks the U.S. Broad Dividend Achievers Index, selecting constituents that have increased dividend payments for at least ten years. Fees are high at 0.53%, and PFM yield's 1.87%. Historically, PFM has performed about the same as an S&P 500 Value Index ETF. However, quality is inferior, as I'll demonstrate by highlighting each fund's current growth rates and valuation.

Invesco Dividend Achievers ETF: A Bloated Low-Yielding Fund Not Worth Paying For

Dividend growth and inflation are usually viewed through separate lenses, but history indicates that the former is useful for investors looking to beat the latter. That enhances the relevance of exchange traded funds like the Invesco Dividend Achievers ETF (PFM) in the current market environment.

PFM Perfect for Dividend Growth, Inflation Protection

With the rising tide of inflation and rate hikes, it's almost imperative that investors look to other sources of income outside bonds. That's where dividends come into play, but not just those from companies that pay high dividends.

Get 10 Years of Dividend Achievements With This ETF

As U.S. stock markets stumble, investors could be turning to steady-paying, quality dividend exchange traded fund strategies. Dividend-paying stocks have taken the lead as market volatility drags on major U.S. benchmarks, especially in the face of the sell-off in the growth style.

Investors Could Find Comfort in Dividend ETFs in Times of Turmoil

PFM is a dividend growth ETF. It looks a bit better than SPY in valuation and quality metrics.

PFM: Dividend Growth Is Not Enough

As inflation concerns mount, investors are can pick up quality dividend growth-related exchange traded funds. Dividend ETFs have enjoyed significant inflows since inflation concerns gained traction in 2021, with many strategies experiencing returns of more than 20% last year, CNBC reports.

News for Invesco Dividend Achievers ETF ETF (PFM)