IDMO - IDMO: Solid Performance In 2024 But Numerous Risks And Disadvantages

2024-07-01 00:54:52 ET

Summary

• Invesco S&P International Developed Momentum ETF targets ex-U.S. and ex-Korea developed world equities that demonstrate robust momentum characteristics.
• In the current version, most of its net assets are allocated to Japanese stocks (54.7%). Denmark (9.9%) and the U.K. (6.6%) are in second and third places, respectively.
• IDMO solidly outperformed its peer IMTM as well as EFA in the past. However, it was unable to keep pace with IVV.
• Owing to FX risks, its inability to deliver a return in line with the U.S. market, and elevated turnover, I believe IDMO is a Hold.

The Invesco S&P International Developed Momentum ETF ( IDMO ) leverages a price appreciation-focused strategy applied to developed world equities (ex-U.S. and ex-South Korea). The uniqueness of the fund is that, unlike most other international equity ETFs, it has delivered a double-digit return this year and even beat the iShares Core S&P 500 ETF ( IVV ) in the first five months by 1.84%....

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