Invesco Dorsey Wright Momentum ETF

Invesco Dorsey Wright Momentum ETF (PDP) is an index fund that tracks the Dorsey Wright Technical Leaders Index. The index holds about 100 large and midsize US stocks chosen for strong price momentum, and it gives the strongest scorers the biggest weights. The fund trades heavily, with 154% portfolio turnover. Its 0.62% expense ratio is well above rival momentum funds such as iShares MSCI USA Momentum Factor ETF (0.15%) and Invesco S&P 500 Momentum ETF (0.13%).

• Over the year to Oct 27, 2026, PDP returned +11.1%, 5th of 9 among similar funds.
• Its 5-year annualized return was +7.7% and its 10-year +13.1%.
• In the 2020 COVID crash it fell 34.7% and regained its old high 3.8 months after the low.
• Its worst full calendar year was 2008 (-46.2%); its best was 2020 (+36.6%).
• The deepest fall in its price history was 59.3% (Dec 10, 2007 to Mar 9, 2009), recovered by Apr 3, 2012.

As of Jul 31, 2026, the fund held 100 securities; the ten largest made up 24.34% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $5.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.46%, +6.47%, -12.10%.

The fund tracks the Dorsey Wright Technical Leaders Index. Dorsey, Wright & Associates builds and maintains this index. It starts with stocks in the Nasdaq US Large Cap and Nasdaq US Mid Cap indexes. Each stock gets a "momentum" score based on how its price has moved over the intermediate and long term compared with a benchmark index. Momentum is the tendency of stocks that have beaten the market to keep doing so for a while. The roughly 100 highest scorers make the cut. As of June 30, 2026, the index held 100 stocks, with company values from $8.9 billion to $4.3 trillion.

Stocks are weighted by momentum score, not by company size, so a midsize company can outweigh a much larger one. As of July 31, 2026, the largest holdings were Apple (3.4%), Amphenol (3.0%), Targa Resources (2.9%), Comfort Systems USA (2.6%) and Carpenter Technology (2.3%). The top 10 made up about 24% of assets. The prospectus noted significant exposure to industrials as of April 30, 2026.

The fund uses "full replication," which means it buys every stock in the index at its index weight. Index members change as market leaders change, so portfolio turnover was 154%. That is like replacing the whole portfolio more than once a year, and it can add trading costs. The fund held no derivatives as of July 31, 2026. If a few stocks come to dominate the index, the fund may become "non-diversified" and hold more in fewer companies.

• PDP charges 0.62% a year, versus an average of 0.21% for the similar funds below (9th of 9, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $63 in the first year and $774 over 10 years (assuming a 5% annual return).

PDP concentrates on recent market leaders and has fallen harder than the broad market in major downturns, so it fits better as a small add-on than as a foundation.

PDP could add a tilt toward stocks with strong recent momentum alongside a broad core fund, but its downturns have been deep. It fell 59.3% from December 10, 2007, to March 9, 2009, and took about 37 months to recover. Its 2008 loss alone was 46.2%. It dropped 34.7% in the 2020 COVID crash but recovered within four months. In 2022 it fell 28.4% and needed about 17 months to get back. Anyone selling shares for spending money during stretches like these would lock in large losses. The fund paid no distributions in the year through October 27, 2026, so it isn't a source of income. Its 0.62% expense ratio is roughly three times the 0.21% average of similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

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