INVESCO, acting as the PXI issuer, adheres to a disciplined investment strategy centered around the Underlying Index, which is meticulously curated and maintained by Dorsey, Wright & Associates, LLC. This index comprises a selection of securities from the energy sector, chosen based on their robust relative strength or momentum characteristics. Leveraging a proprietary methodology, Dorsey Wright evaluates each security's momentum score, emphasizing recent strong performers within the sector. With a minimum of 30 constituents selected from a pool of approximately 2,000 large-cap companies within the Nasdaq US Benchmark™ Index, the Underlying Index ensures diversification while focusing on high-momentum energy sector entities. These securities are weighted within the index according to their momentum scores, with higher scores translating to greater representation. Employing a full replication approach, the Fund aims to mirror the Underlying Index by investing in all constituent securities in proportion to their weights. While maintaining a concentration policy that aligns with the index, the Fund's holdings are subject to periodic adjustments, reflecting market dynamics and changes in sectoral compositions. As of June 30, 2023, the Underlying Index consisted of 38 constituents, showcasing market capitalizations ranging from $479 million to $433.6 billion.
The PXI Dividend strategy, as implemented by the Invesco, emphasizes a consistent income stream for investors through dividends generated by the underlying securities. With the Fund primarily investing in companies within the energy sector selected for their robust momentum characteristics, dividend-paying stocks play a significant role in the portfolio's composition. As the Fund employs a full replication methodology to track the Underlying Index, it endeavors to mirror the dividend distribution of the index constituents. Dorsey, Wright & Associates, LLC, meticulously curate the index, ensuring that dividend-yielding stocks are included in accordance with their momentum scoring methodology. By adhering to a concentration policy that aligns with the sectoral focus of the Underlying Index, the Fund aims to provide investors with a reliable income stream derived from dividends while capitalizing on the momentum-driven performance of the energy sector.
The Invesco's PXI Tracking strategy is designed to closely follow the performance of the Underlying Index, which consists of carefully selected securities within the energy sector exhibiting strong momentum characteristics. Employing a full replication approach, the Fund invests in all constituent securities in proportions mirroring their weights in the index. Dorsey, Wright & Associates, LLC, the Index Provider, employs a proprietary methodology to evaluate the momentum scores of eligible securities, ensuring that only those demonstrating the highest momentum are included in the index. By weighting each security based on its momentum score, the Fund aims to accurately reflect the performance of the Underlying Index, providing investors with an opportunity to participate in the potential gains driven by the momentum within the energy sector. The Fund's tracking strategy enables investors to gain exposure to the dynamic energy market while benefiting from the expertise of the Index Provider in selecting high-performing securities.
The PXI Correlation strategy implemented by the Invesco focuses on understanding and managing the correlation of the fund's performance with various market factors. As the Fund primarily invests in securities within the energy sector exhibiting strong momentum characteristics, its correlation is influenced by the performance of this specific market segment. Dorsey, Wright & Associates, LLC, the Index Provider, meticulously curates the Underlying Index, ensuring that securities selected exhibit powerful momentum traits. Through this disciplined approach, the Fund seeks to manage correlation risks while capitalizing on the momentum-driven performance of the energy sector. Additionally, by maintaining a diversified portfolio comprising securities from various industries within the energy sector, the Fund aims to mitigate specific industry-related correlation risks. By actively monitoring and managing correlation factors, the PXI seeks to provide investors with a balanced exposure to the energy sector while managing overall portfolio risk.
The PXI Sector strategy implemented by the Invesco is focused on capitalizing on opportunities within the energy sector while managing associated risks. By investing in securities selected for their robust momentum characteristics, the Fund aims to capture the potential upside within this dynamic market segment. Dorsey, Wright & Associates, LLC, the Index Provider, employs a meticulous selection process to curate the Underlying Index, ensuring representation from various industries within the energy sector. This diversified approach helps mitigate concentration risks while providing exposure to a broad spectrum of energy-related activities, including oil and gas exploration, production, refining, services, pipelines, and alternative energy sources like solar and wind. Through active monitoring and rebalancing, the Fund aims to maintain alignment with sectoral trends, allowing investors to benefit from the growth potential of the energy sector while managing sector-specific risks.
The PXI Exposure strategy pursued by the Invesco is geared towards providing investors with targeted exposure to the energy sector, focusing on securities displaying robust momentum characteristics. Leveraging Dorsey, Wright & Associates, LLC's expertise in index curation, the Fund aims to capture the potential growth opportunities within this dynamic market segment. By investing in a diversified portfolio of securities selected from various industries within the energy sector, including oil and gas exploration, production, refining, services, pipelines, and renewable energy sources, the Fund seeks to mitigate single-stock and industry-specific risks. Through active monitoring and periodic rebalancing, the PXI Fund aims to maintain its exposure to sectors exhibiting favorable momentum while managing overall portfolio risk, thereby offering investors the opportunity to participate in the potential upside of the energy sector while diversifying their investment holdings.
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