Strength in Invesco Dorsey Wright Energy MomentumETF's People Pillar is partially offset by an Average Process Pillar rating, leading to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy gets an Average Process Pillar. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. 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

Alpha Metallurgical Resources

Weatherford International PLC

Targa Resources

ConocoPhillips

PBF Energy

Marathon Petroleum

Civitas Resources

Murphy Oil

Texas Pacific Land Trust

Permian Resources Corp

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Invesco Dorsey Wright Energy MomentumETF earns an Average Process Pillar rating. 

The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also strengthens the process. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. 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 beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

 This strategy, over time, has opted for smaller market-cap companies, compared with others in the Equity Energy Morningstar Category.  But in terms of style (value/growth) exposure, it is similar. Analyzing additional factors, this fund has constantly tilted toward stocks with higher trading volumes than its Morningstar Category Peers over the past few years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This is a higher-risk, higher-reward approach. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy has exhibited a tendency to hold fewer stocks with high dividend or buyback yields over peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In recent months, the strategy also had less Yield 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 basic materials and energy relative to the category average by 7.7 and 4.3 percentage points, respectively. The sectors with low exposure compared to category peers are utilities and industrials, with utilities underweighting the average portfolio by 7.4 percentage points of assets and industrials similar to the average. The portfolio is composed of 39 holdings and is relatively top-heavy. Of the strategy's assets, 46.0% are concentrated within the top 10 holdings, compared to the category’s 38.3% average. And finally, in terms of portfolio turnover, this portfolio's holdings turn over more often than comparable products in its peer group, possibly resulting in higher costs for investors and a drag on performance.

Average

Process

Invesco Dorsey Wright Energy MomentumETF's strong equity team drives the strategy's Above Average People Pillar rating. There are four managers listed on the fund: Pratik Doshi, Peter Hubbard, Michael Jeanette, Tony Seisser. The team is well equipped, with an average of 11 years of portfolio management experience. Together, they manage a total of 142 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 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.

Above Average

People

Invesco, with USD 1.3 trillion in AUM, tries to cover a great many bases. The firm succeeds in a number of areas but also has its share of subpar offerings, along with many others somewhere in the middle. The firm retains a Morningstar Parent rating of Average.
Invesco is now 3.5 years past the closing of its merger with OppenheimerFunds. While there were some glitches, overall the process avoided the pitfalls that can accompany such corporate actions. On the positive side, Invesco’s international-equity teams—its EQV team in Texas and the New York-based group inherited from Oppenheimer—remain strong points. The firm’s ETF lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 30% of Invesco’s AUM. 
However, the extensive U.S.-equity lineup remains a weak link despite manager shuffles aimed at bolstering poor performers. The retirement of Meggan Walsh, who managed the relatively few appealing offerings in that group, didn’t help. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive.
Invesco has a substantial presence outside the U.S., but fund performance has been subpar in Asia, with manager turnover an ongoing concern. In the U.K. and Europe, the picture has brightened, but that region still can’t be considered a strength.

Parent

Invesco DWA Energy Momentum ETF

PXI tracks an index of US energy firms selected and weighted by price momentum.

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Laredo Petroleum

Invesco S&P SmallCap Energy ETF

Invesco Dynamic Energy Exploration & Production ETF

Ring Energy

SilverBow Resources

SM Energy

SPDR S&P Oil & Gas Exploration & Production ETF

We have highlighted five ETFs & stocks that were at the forefront of the energy sector rally so far this year.

5 Best ETFs & Stocks of the Top Performing Energy Sector

Last Friday, the Invesco DWA Energy Momentum ETF (PXI) jumped 3% on volume that was above the daily average, extending its year-to-date gain to a stellar 81.13%. All the Invesco exchange traded fund did last week was soar 10.17%.

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With the last day of September more than halfway over, stock indexes and ETFs have continued to fall as investors prepare to finish a challenging but predictable month. The Dow Jones Industrial Average shed another 370 points, or over 1%, after climbing at the open.

Stocks Soured in September, While Inverse And VIX ETFs Scored

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Breakwave Dry Bulk Shipping ETF

VanEck Vectors Unconventional Oil & Gas ETF

iPath Series B Bloomberg Natural Gas Subindex Total ReturnSM ETN 

Sprott Uranium Miners ETF

While the month of September has been downbeat for Wall Street on Evergrande crisis and rising rate worries, these ETF areas surged on their own sector strength.

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US Global Jets ETF

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Key indexes of Wall Street overlooked the Evergrande-related tensions and ended the week on a positive note.

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Simplify Volt Fintech Disruption ETF

We have highlighted four that have gained in double-digits over the past month and could be compelling picks in the weeks ahead even if September selling continues.

4 Sector ETFs Gaining Double Digits Amid September Selling

While there's ample hoopla around environmental, social, and governance (ESG) and other climate-aware investing strategies this year, the old school energy sector is one of the best-performing groups in the S&P 500. Just look at the Invesco DWA Energy Momentum ETF (PXI), which is higher by 58.33% year-to-date.

Energy Stocks, ETFs Again Wooing Investors

Bank of America

Goldman Sachs

VanEck Vectors Oil Services ETF

Amid rising oil prices, the energy sector has been enjoying a strong rally lately. We have highlighted five ETFs that have been showing solid momentum in the space, gaining at least 8% over the past week and will continue to outperform in the weeks ahead.

Energy ETFs: A Bright Spot Amid Volatility

Callon Petroleum

iShares U.S. Oil Equipment & Services ETF

Nabors Industries

Talos Energy Inc

SPDR S&P Oil & Gas Equipment & Services ETF

We have highlighted five energy ETFs & stocks that led the way higher last week.

Best Energy ETFs & Stocks of Last Week

Despite the slump, the energy sector is still outperforming the broad market. Notably, the S&P 500 Energy Index is up nearly 20% year to date compared to gains of 17.3% for the S&P 500.

Oil Price Slumps: What Lies Ahead for Energy ETFs?

Brent crude prices are in the midst of a three-week slide and West Texas Intermediate is stumbling amidst concerns that the Delta variant of the coronavirus will stymie the reopening trade and as members of the Organization of Petroleum Exporting Countries (OPEC) and the so-called “plus” nations agreed to ramp up output. Predictably, that volatility [.

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Energy stocks are on the course of their best year in more than three decades, per a CNBC article.

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Nearly halfway through 2021, it's widely known that oil prices are rising, supporting energy's status as the best-performing sector in the S&P 500. That's particularly notable considering the sector's rough go of things in 2020.

Breaking Down the Excellent Energy Stocks in Invesco's PXI ETF

Domestic crude prices surged 5% last week, climbing to a high of almost three years, re-cementing energy's status as the best-performing sector in the S&P 500 this year. Add a dash of momentum to the energy sector with the Invesco DWA Energy Momentum ETF (PXI) and things get really interesting.

Momentum Energy ETF Offers Potential for Dividend Growth Too

The energy sector's redemption story is reaching epic proportions this year. Up nearly 55% year-to-date, the Invesco DWA Energy Momentum ETF (PXI) is a big part of it.

Momentum Is Building in This Still-Credible Value Play

When it comes to looking at ETF provider Invesco's top-performing funds, energy is rising above the rest. ETF investors can get energy exposure with an exploration & production tilt, or a momentum-based or small cap strategy.

Energy Still Hosts Invesco's Best YTD Performers

Some market observers say oil demand is poised to soar in epic fashion. Should that scenario come to pass, high beta assets like the Invesco DWA Energy Momentum ETF (PXI) are ready to benefit.

Goldman Sachs: Oil Demand Is Set to Soar

With energy ranking as the best-performing sector to start 2021, some investors are considering momentum as a way of accessing the high-flying group. The Invesco DWA Energy Momentum ETF (PXI) is one stellar option.

Ride the Energy Rally with ‘PXI', Up a Modest 140%

Investors and traders alike will want to check out the high-flying Invesco DWA Energy Momentum ETF (PXI), which is up 56% year-to-date. Higher oil prices are providing the necessary tailwinds for an energy rally and there's no stopping the party yet.

This Invesco ETF Is Up Nearly 110%. And It's Not Leveraged

Energy has strongly rebounded this year and is the top-performing sector.

ETFs & Stocks Leading the Energy Rally This Year

United States Brent Oil Fund LP

iShares U.S. Oil & Gas Exploration & Production ETF

United States Oil Fund LP

Winter storm and arctic blast of cold weather in Texas had some severe impacts on the oil industry.

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Looking at Invesco's ETF funds so far in 2021, energy is a theme common to its top three performers. One fund, the Invesco DWA Energy Momentum ETF (PXI), feeds off momentum in the energy sector.

Feed Off of the Energy Sector's Momentum with the ‘PXI' ETF

Invesco WilderHill Clean Energy ETF

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The S&P 500 Energy index has rallied 45% in the past few months. Five of the best-performing ETFs from Invesco have been in the energy sector.

For 5 Top-Performing Invesco ETFs, It's All About Energy

There's a renewed strength in the energy sector. Investors can capitalize on renewables with a pair of Invesco ETFs.

News for Invesco DWA Energy Momentum ETF ETF (PXI)