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Invesco Buyback Achievers ETF

PKW tracks a market-cap-weighted index of stock in US firms that repurchased at least 5% of their outstanding shares in the previous 12 months.

The record year for share-repurchase authorizations highlights strong free cash flow and well-capitalized US large caps, with low M&A trends favoring buybacks. I reiterate a buy rating on the Invesco BuyBack Achievers ETF, despite its moderate to high expense ratio and mixed liquidity. PKW offers a value-oriented portfolio with a low P/E ratio, though it has a cyclical risk profile and concentration in Consumer Discretionary.

PKW: Record Buybacks In 2024, This Low P/E Fund Remains A Buy

The Invesco BuyBack Achievers ETF focuses on companies with consistent share buybacks, offering a value-oriented portfolio with a P/E ratio of 14.3x. PKW's portfolio is diversified across sectors, with significant overweight in consumer discretionary and industrials, and underweight in technology, consumer staples, and utilities. PKW's low valuation and high growth profile make it an attractive alternative to typical dividend and value ETFs.

PKW: A Cheap Buyback ETF Outperforming Value Plays

PKW's strategy is focused on U.S. companies that are executing share repurchase programs. PKW's portfolio has a value tilt. It has an adjusted EY higher than that of IVV. Its quality is comparatively strong, but its growth characteristics are lagging. With a few robust years in the books, PKW was nonetheless unable to consistently outperform IVV and a few peers.

PKW: Seemingly Robust Buyback-Focused Strategy, But Soft Performance

Stock buybacks are back in vogue this year. Stock buybacks by S&P 500 companies increased 9.9% year over year and 8.1% sequentially in the first quarter of 2024.

S&P 500 Firms Boost Stock Buybacks in Q1: ETF to Tap

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Corporate buybacks have been rising fast in America thanks to upbeat earnings and higher cash flow generation.

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Stock buybacks recently staged a strong comeback from the lull witnessed in 2023. Companies have announced share repurchases of more than $383 billion in the last 13 weeks, up 30% from the year-ago period and the highest since June 2018.

Tap the Stock Buyback Trend With PKW ETF

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At Berkshire Hathaway's recent annual shareholder meeting, Warren Buffett discussed Berkshire's actions, including selling the Apple (AAPL) stock and a loss on Paramount (PARA).

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Invesco BuyBack Achievers ETF invests in companies that have reduced shares outstanding by at least 5% in the last 12 months. The portfolio massively underweights technology, and beats the benchmark regarding value, growth and return metrics. PKW has outperformed other buyback-focused ETFs over the last 12 months, but has lagged Cambria Shareholder Yield ETF in a longer time frame.

PKW: Buyback ETF Combining Value And Growth

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80% of S&P 500 companies are entering pre-earnings buyback blackouts, according to Bloomberg. Analysts anticipate a potential rebound post-blackout.

Buyback Bonanza: The Top 7 ETFs to Profit From Corporate Cash Splurges

The Inflation Reduction Act contained a controversial though bipartisan provision that applied a 1% levy to companies' share repurchase activities. However, data indicate that tax isn't yet hurting stock buybacks.

Buyback Activity Jumped in Fourth Quarter

The pace of stock buybacks by S&P 500 member firms is likely to accelerate this year and in 2025, according to Goldman Sachs. That could renew investors' affinity for the Invesco BuyBack Achievers ETF (PKW).

Renewed Buyback Binge Could Boost This ETF

The Invesco BuyBack Achievers ETF invests in companies that have reduced their shares outstanding by at least 5% in the past year.

PKW: Buybacks Still A Thing In Higher Rates

The Invesco BuyBack Achievers ETF tracks the NASDAQ U.S. BuyBack Achievers Index. PKW has performed nearly in line with the S&P 500 since its launch in 2006, delivering strong risk-adjusted returns. The Fund has significantly outperformed value-based products.

Invesco BuyBack Achievers ETF: A Solid Value Play

Stock buybacks can be controversial. A company uses its cash to buy its own shares in the open market.

If you think stocks have gotten too expensive, this ETF's strategy may work for your portfolio

PKW tracks 315 US stocks that have effected a 5% net reduction in their shares outstanding over a 12-month period. We pick out some of the major themes that could weigh on PKW's prospects. The risk-reward on the charts does not look appealing.

PKW ETF: Limited Motivation To Go Long At This Juncture

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Investors were net purchasers of fund assets for the third week in four. Investors took a risk-off approach to investing during the fund flows week. Equity ETFs witnessed net outflows for the first week in seven.

U.S. Weekly FundFlows Insight Report: Investors Go Into Risk-Off Mode For Fund Flows Week

PKW selects U.S. companies that have reduced shares outstanding by 5% or more in the last year. Fees are 0.61%, and the ETF manages $920 million in assets. The 5% threshold, combined with only utilizing one year's worth of buybacks, leads to high turnover. There is also no mechanism to remove current constituents that pause their buyback programs.

PKW: Buyback Investors Beware, This High-Fee ETF Isn't Worth The Risk

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Share repurchases, or stock buybacks, have become increasingly prevalent in tech companies' earnings this year.

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Buybacks are waning lately as borrowing costs are rising and cash reserves are shrinking.

ETFs to Win/Lose on Reduced Buybacks

In the fourth quarter, S&P 500 companies shelled out about $189 billion on stock buybacks, up 2% from the third quarter.

Time to Tap Buyback ETFs?

Corporate buybacks may surpass $1 trillion for the first time, according to S&P Global.

Buyback ETFs Could Benefit as Share Repurchases Top $1T

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Software giant Oracle (ORCL) reported solid second-quarter fiscal 2023 results, beating both revenue and earnings estimates.

ETFs in Focus Post Oracle's Solid Q2 Earnings

Invesco BuyBack Achievers ETF gives investors exposure to companies that buy back 5% of their shares or more. Buybacks are great if companies opportunistically buy below "intrinsic" value.

Invesco BuyBack Achievers ETF: Do Buybacks Generate Alpha?

Oracle reported mixed first-quarter fiscal 2023 results. ORCL's earnings missed the Zacks Consensus Estimate, while revenues came in line.

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U.S. corporate buybacks have been robust in recent months. But the Inflation Reduction Act includes 1% excise duty on repurchases.

News for Invesco Buyback Achievers ETF ETF (PKW)