6 min readBy Beqa Bumbeishvili ETF Insider
How does the AHOY ETF work?
The AHOY ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
Invesco, as the issuer of the PSL, adheres strictly to the guidelines set forth by Dorsey, Wright & Associates, LLC, the Index Provider, in compiling the Underlying Index. This index consists of at least 30 securities from the consumer staples sector exhibiting robust relative strength or momentum characteristics, selected from a pool of approximately 2,000 of the largest constituents in the Nasdaq US Benchmark™Index. The Index Provider utilizes a proprietary methodology to assess the momentum of each security, considering intermediate and long-term price movements against a benchmark. Securities with the highest momentum scores are given greater weightings in the Underlying Index, ensuring that the PSL focuses on companies with strong recent performance. As of June 30, 2023, the Underlying Index comprised 31 constituents with varying market capitalizations. The Fund employs a full replication methodology, investing in all securities in the Underlying Index in proportion to their weightings. While the Fund may concentrate its investments in certain industries, such as the consumer staples sector, it does so only to the extent that the Underlying Index reflects such concentration, maintaining diversification across industries over time.
The PSL Dividend fund, managed by Invesco, is designed to provide investors with exposure to dividend-paying companies within the consumer staples sector. The fund invests at least 90% of its total assets in securities comprising the Underlying Index, which consists of high-quality dividend-paying stocks selected based on their strong relative strength or momentum characteristics. Dorsey, Wright & Associates, LLC, the Index Provider, employs a meticulous methodology to evaluate securities within the consumer staples sector, considering factors such as price movements against a benchmark and other eligible securities. The resulting portfolio typically includes companies engaged in providing non-cyclical consumer goods and services, ranging from tobacco and food to non-discretionary retail goods. Through a full replication strategy, the PSL Dividend fund aims to mirror the performance of the Underlying Index, offering investors an opportunity to participate in the dividends generated by these stable and reliable consumer staples companies.
The PSL Tracking fund, managed by Invesco, is structured to closely follow the performance of the Underlying Index, which comprises securities from the consumer staples sector exhibiting robust relative strength or momentum characteristics. Dorsey, Wright & Associates, LLC, the Index Provider, employs a rigorous methodology to evaluate securities within the sector, selecting those with the highest momentum scores for inclusion in the index. With a commitment to full replication, the PSL Tracking fund invests in all securities comprising the Underlying Index in proportion to their weightings, ensuring a comprehensive representation of the index's performance. This approach provides investors with a transparent and efficient means of gaining exposure to the consumer staples sector, allowing them to capitalize on the potential upside of companies with strong recent performance while minimizing tracking error relative to the Underlying Index.
The PSL Correlation fund, managed by Invesco, aims to closely correlate with the performance of the Underlying Index, which consists of securities from the consumer staples sector selected for their robust relative strength or momentum characteristics. Dorsey, Wright & Associates, LLC, the Index Provider, meticulously evaluates securities within this sector, emphasizing factors such as price movements against a benchmark and other eligible securities. By employing a correlation-focused strategy, the PSL Correlation fund seeks to mirror the fluctuations of the Underlying Index while mitigating the impact of market volatility. Through diversified exposure to stable consumer staples companies, this fund offers investors a reliable means of aligning their investment outcomes with the performance of the broader sector, thus potentially reducing portfolio risk and enhancing overall stability.
PSL SectorThe PSL Sector fund, managed by Invesco, specializes in providing targeted exposure to the consumer staples sector. With a primary focus on securities exhibiting robust relative strength or momentum characteristics, the fund aims to capture the potential upside of companies within this sector. Dorsey, Wright & Associates, LLC, the Index Provider, utilizes a comprehensive methodology to identify securities with the highest momentum scores, ensuring a diversified yet focused portfolio composition. By investing in companies engaged in providing non-cyclical consumer goods and services, such as tobacco, food, and non-discretionary retail items, the PSL Sector fund offers investors a strategic avenue for capitalizing on the stability and resilience typically associated with the consumer staples sector. Through its sector-specific approach, this fund provides investors with the opportunity to participate in the potential growth of this vital segment of the economy while managing risks associated with broader market fluctuations.
The PSL Exposure fund, managed by Invesco, is designed to offer investors broad exposure to the consumer staples sector. Leveraging the expertise of Dorsey, Wright & Associates, LLC, the Index Provider, the fund focuses on securities within this sector exhibiting strong relative strength or momentum characteristics. Through a meticulous selection process, securities are chosen from a pool of the largest constituents in the Nasdaq US Benchmark™ Index, ensuring comprehensive coverage of the sector. With a commitment to full replication, the PSL Exposure fund invests in all securities comprising the Underlying Index in proportion to their weightings. This strategy provides investors with a transparent and efficient means of gaining exposure to a diverse range of consumer staples companies, ranging from tobacco and food to non-discretionary retail goods. By offering broad sector exposure, the fund enables investors to capitalize on the stability and resilience inherent in the consumer staples sector while diversifying their investment portfolios effectively.
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6 min readThe AHOY ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
4 min readThe PSL ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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