Why is PDP better than DWAS?

PDP may be considered better than DWAS for some investors due to its specific focus, offering diversification.

DWAS's performance relative to PDP will vary over time, depending on market conditions.

Should I invest in PDP or DWAS?

The choice between PDP and DWAS should align with your investment goals, risk tolerance, and desired exposure.

Are PDP and DWAS good investments?

Both PDP and DWAS can be suitable investments depending on individual investment strategies, goals, and risk profiles.

What is the correlation between PDP and DWAS?

The correlation between PDP and DWAS can vary over time, reflecting differences in performance.

3 min read

By Beqa Bumbeishvili, ETF Insider

PDP VS DWAS

Exchange-Traded Funds (ETFs) have rapidly gained popularity as versatile investment vehicles that provide exposure to a diverse range of sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: PDP (Invesco DWA Momentum ETF) and DWAS (Invesco DWA SmallCap Momentum ETF). Our analysis will cover essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

PDP Vs DWAS: Overview

The PDP and DWAS ETFs represent different facets of the investment landscape, targeting momentum within the equity market. PDP aims to track the performance of large-cap companies exhibiting strong momentum characteristics, while DWAS is focused on small-cap companies with compelling momentum trends. Understanding the distinction in their investment approach will provide valuable insights into potential returns and risk factors.

PDP Vs DWAS: Sectors and Top Holdings

PDP's primary focus lies in identifying and capturing the momentum of large-cap stocks across various sectors. On the other hand, DWAS concentrates on small-cap companies with momentum potential, leading to a distinct set of top holdings. Investors seeking exposure to specific sectors can leverage this knowledge to align their portfolios with their sector preferences.

PDP overlap PDP VS DWAS

PDP Vs DWAS: Capitalization and Strategy

PDP boasts a substantial asset under management (AUM) due to its appeal to investors looking for exposure to momentum-driven large-cap equities. DWAS's strategy centers on harnessing the momentum of smaller companies, potentially offering different risk-return dynamics. The contrasting capitalization and strategic focus underline the importance of understanding an ETF's core approach when making investment decisions.

PDP Vs DWAS: Tracking and Exposure

PDP and DWAS exhibit varied tracking and exposure methodologies. PDP's goal is to mirror the performance of an index comprised of large-cap momentum stocks. Conversely, DWAS tracks an index of small-cap momentum stocks, shedding light on the ETF's emphasis on smaller companies with growth potential. Investors must grasp these tracking and exposure nuances to select the ETF that best aligns with their investment objectives.

Conclusion

PDP and DWAS exemplify distinct strategies catering to momentum-driven equity investments across different market segments. For individuals keen on delving deeper into the intricacies of holdings, correlations, overlaps, and other valuable insights, ETF Insider stands as an indispensable tool. Designed as a user-friendly app, it equips investors with comprehensive information on these financial instruments and more.

Disclaimer: This article does not provide any investment advisory services.

Sources: