PFM - PFM: Discussing The Impact Of Reconstitution

2024-04-01 21:25:29 ET

Summary

• PFM's portfolio has seen a few changes in the wake of the underlying index's reconstitution in March.
• With valuation being less of a concern assuming the new narrative dominates the markets, I am still mostly tepid on PFM, so the Hold rating is maintained.
• The factor story under the hood has not changed much, with the portfolio now being a bit more expensive while the weighted-average growth rates have weakened slightly.
• While obviously not being a concern serious enough for a rating downgrade, these developments do not support a more optimistic rating either.

I am continuing my series of updates on dividend exchange-traded funds, with today's article on the Invesco Dividend Achievers™ ETF ( PFM ) being obviously necessary in the wake of its underlying index's annual reconstitution that was completed in March. And even though the portfolio saw only cosmetic changes, there are still a few notable factor developments that can be spotted upon more attentive analysis....

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