PKW - PKW: Buybacks Still A Thing In Higher Rates

2024-01-30 09:53:31 ET

Summary

• The Invesco BuyBack Achievers ETF invests in companies that have reduced their shares outstanding by at least 5% in the past year.
• The ETF holds a diverse portfolio of companies across various sectors, including Morgan Stanley, Amgen, Comcast, ConocoPhillips, and Lowe's.
• The ETF's performance has been comparable to the S&P 500, suggesting that buybacks may not necessarily result in outperformance.

There was a time when many (me included) thought that higher rates would vastly diminish stock buybacks financed by cheap debt. Turns out many (me included) were wrong. Maybe buybacks will continue to be an ongoing trend independent of rates. If that's your belief, the Invesco BuyBack Achievers ETF (PKW) may be the fund for you. PKW is an exchange-traded fund that primarily invests in companies that have reduced their shares outstanding by at least 5% in the trailing 12 months. The fund follows the Nasdaq US BuyBack Achievers™ Index, which is designed to track the performance of such companies. The fund's investment strategy reflects the belief that companies that buy back their own shares may be undervalued and represent an attractive investment opportunity....

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