5 min readBy Ron Koren ETF Insider
How does the PSMB ETF work?
The PSMB 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.
The Invesco Balanced Multi-Asset ETF (PSMB) is an actively managed exchange-traded fund (ETF) that focuses on diversification by primarily investing in other ETFs, including those advised by Invesco and unaffiliated advisers. With a strategic allocation approach, PSMB aims to maximize diversification benefits by investing approximately 45%-75% of its assets in equity ETFs and approximately 25%-55% in fixed income ETFs. Additionally, around 10%-30% of its assets are allocated to Underlying ETFs that invest in foreign equity and fixed income securities, including emerging markets. PSMB's portfolio typically consists of a limited number of securities, allowing it to create a balanced portfolio for current income and capital appreciation while actively managing risk. The Fund's sub-adviser employs comprehensive quantitative and qualitative criteria to select the most suitable Underlying ETFs, making PSMB a versatile investment option for those seeking a balanced approach to asset allocation. For more information about the current list of Underlying ETFs, you can visit www.invesco.com/ETFs.
The PSMB Dividend ETF is an actively managed exchange-traded fund that primarily invests in other ETFs, aiming to achieve a balanced investment approach. The fund's portfolio is strategically allocated, with approximately 45%-75% of assets in Equity ETFs and approximately 25%-55% in Fixed Income ETFs.
Tracking the Prime Source Mortgage-backed Bond ETF involves actively managing a diversified portfolio of exchange-traded funds (ETFs). This fund of funds primarily invests in other ETFs, with a focus on assets managed by Invesco ETFs, although it may occasionally include ETFs managed by unaffiliated advisers. The ETF aims to achieve its investment objective by maintaining a balanced allocation, with approximately 45%-75% of assets in Equity ETFs and approximately 25%-55% in Fixed Income ETFs. Additionally, about 10%-30% of assets may be allocated to Underlying ETFs investing in foreign equity, foreign fixed income securities, ADRs, and GDRs, some of which may be in emerging markets. The strategic allocation across asset classes, factor exposures, and ongoing monitoring by the sub-adviser aims to create a well-diversified portfolio that seeks current income and capital appreciation while managing active risk. The number of securities held in the portfolio is generally limited to 10-20 to achieve this goal. For more details on the specific Underlying ETFs used in the portfolio, investors can refer to www.invesco.com/ETFs.
The correlation aspect of the PSMB ETF, or the Invesco Balanced Multi-Asset ETF, is essential to understanding its performance. As an actively managed fund of funds, PSMB primarily invests in other ETFs, both equity (Equity ETFs) and fixed-income securities (Fixed Income ETFs). Its investment objective focuses on achieving a balanced portfolio, aiming for approximately 45%-75% of total assets in Equity ETFs and 25%-55% in Fixed Income ETFs, with a portion allocated to foreign securities and ADRs/GDRs. Due to its diversified approach, PSMB's correlation with broader market indices may vary, making it an intriguing option for investors seeking a balanced and diversified investment strategy.
The PSMB Sector, represented by the actively managed exchange-traded fund (ETF) known as Invesco Balanced Multi-Asset ETF, encompasses a diversified investment approach. This fund of funds primarily allocates its assets into other ETFs, emphasizing a balanced investment style. With a strategic focus on both fixed-income securities (Fixed Income ETFs) and equity securities (Equity ETFs), the PSMB Sector aims to provide investors with exposure to a broad spectrum of asset classes. Additionally, a portion of its assets is dedicated to Underlying ETFs focusing on foreign equity, foreign fixed income securities, ADRs, and GDRs, including emerging markets. The PSMB Sector's strategic allocation and portfolio construction are designed to achieve current income and capital appreciation over a market cycle, offering investors a well-rounded investment option within the ETF universe.
The exposure characteristic of the Invesco Balanced Multi-Asset ETF (PSMB) reflects its actively managed approach to investing in a diversified range of asset classes. This fund of funds ETF primarily allocates its assets to other Invesco ETFs, aiming for a balanced investment style. PSMB''s target allocation typically includes approximately 45%-75% in Equity ETFs and approximately 25%-55% in Fixed Income ETFs, with approximately 10%-30% in foreign equity, foreign fixed income securities, ADRs, and GDRs. The portfolio management team strategically selects Underlying ETFs that represent broad asset classes and specific investment factors, resulting in a balanced portfolio designed to provide current income and capital appreciation consistent with the Fund''s investment objective. For detailed information on the specific ETFs held within PSMB''s portfolio, investors can utilize ETF Insider''s web app, which offers comprehensive data, visualization tools, and insights to help discover exposure, correlations, and more for this and other US ETFs.
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