Invesco Dorsey Wright SmallCap Momentum ETF

Invesco Dorsey Wright SmallCap Momentum ETF (DWAS) holds about 200 US small-company stocks. It follows the Dorsey Wright SmallCap Tech Leaders Index, which picks and weights stocks by momentum, meaning how strongly their prices have risen compared with the market. It charges 0.60% a year, roughly three times the 0.19% average of similar small-cap growth funds. It also trades heavily, with a portfolio turnover rate of 186%.

• Over the year to Oct 27, 2026, DWAS returned +11.7%, 3rd of 4 among similar funds.
• Its 5-year annualized return was +3.8% and its 10-year +12.1%.
• In the 2020 COVID crash it fell 46.2% and regained its old high 4.6 months after the low.
• Its worst full calendar year was 2022 (-18.5%); its best was 2013 (+50.1%).
• The deepest fall in its price history was 46.2% (Feb 20, 2020 to Mar 18, 2020), recovered by Aug 4, 2020.

As of Aug 31, 2026, the fund held 200 securities; the ten largest made up 13.04% of assets. It also reported 32.94% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Aug 31, 2026, investors added a net $24.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +9.61%, -11.86%, -2.50%.

DWAS seeks to track the Dorsey Wright SmallCap Tech Leaders Index. Dorsey, Wright & Associates builds that index using fixed rules. It starts with about 2,000 small-cap stocks in the Nasdaq US Small Cap TR Index. Each stock gets a momentum score based on how its price has moved over the medium and long term compared with a benchmark and the other eligible stocks. Momentum is the tendency of recent winners to keep doing better than other stocks for a while. The roughly 200 stocks with the highest scores go into the index.

Each stock is weighted by its momentum score, not by company size, so the highest scorers get the largest slices. As of October 31, 2025, the companies in the index ranged from $43.6 million to $29.2 billion in market value. Invesco uses full replication, which means the fund owns essentially every stock in the index at its index weight. It keeps at least 90% of its assets in index stocks. It keeps a weakening stock until the index removes it. The list changes often, and the turnover rate was 186%, which means the fund replaced nearly all its holdings almost twice in a year. That much trading adds costs.

The index can lean heavily toward one industry, and the fund will follow it. As of August 31, 2026, the largest positions were Erasca, Sezzle, Enova International, Bel Fuse and agilon health. Each was under 2% of the fund, and the top 10 together made up 13.0%.

• DWAS charges 0.6% a year, versus an average of 0.19% for the similar funds below (4th of 4, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

Its momentum approach, 0.60% fee and deep past declines suit a small, higher-risk slice of a portfolio rather than its foundation.

DWAS could add a tilt toward small-company momentum stocks next to a broad core fund, but its price has swung hard. In the 2020 COVID crash it fell 46.2% from February 20 to March 18, then recovered by August 4, 2020, about 4.6 months later. In the 2022 bear market it fell 26.9% and took about 19 months, until February 12, 2024, to recover. Its worst calendar year was 2022, a loss of 18.5%. It launched in 2012, so it has no record from the 2008 crisis. Anyone who has to pull money out during a slump like that would lock in losses. Its yield was 0.04% as of October 27, 2026, paid once a year, so it provides almost no income. Its cost works out to about $61 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.