PTF: Questionable Combination Of Factors For 2022

Summary

• PTF mixes top momentum players from the tech sector, allowing small-, mid-, and large-cap companies to compete for a place in its portfolio.
• The momentum score is a principal factor influencing a stock's weight, so it is not $1 trillion league-heavy, with large exposure to mid-caps.
• The fund had outperformed QQQ and IVV in 2015-2021 despite wild price swings last year.
• 60 bps expense ratio is well above the class median. Its turnover is gargantuan, 172%. It does not make distributions at the moment.
• As I expect 2022 to be a choppy year for expensive tech as I have outlined in a few of my recent articles, I give this ETF a Hold rating.

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The Invesco DWA Technology Momentum ETF (NASDAQ:PTF) is an around $458 million fund designed to track the outstanding performers from the tech cohort of the NASDAQ US Benchmark hand-picked for the Dorsey Wright Technology Technical

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MSFT, AAPL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.