Invesco Dorsey Wright Basic Materials Momentum ETF

Invesco Dorsey Wright Basic Materials Momentum ETF (PYZ) tracks the Dorsey Wright Basic Materials Technical Leaders Index. The index holds at least 30 U.S. materials stocks, such as steel makers, specialty metal producers, chemical companies, fertilizer makers and miners, picked for strong price momentum. Most materials funds weight stocks by company size. PYZ weights them by momentum score instead. It charges 0.60% a year, about double the 0.29% average of similar funds, and it has had deep drops.

• Over the year to Oct 27, 2026, PYZ returned +6.6%, 7th of 8 among similar funds.
• Its 5-year annualized return was +6.0% and its 10-year +8.7%.
• In the 2020 COVID crash it fell 42.3% and regained its old high 6.5 months after the low.
• Its worst full calendar year was 2008 (-43.6%); its best was 2009 (+47.6%).
• The deepest fall in its price history was 65.2% (Jun 5, 2008 to Mar 9, 2009), recovered by Feb 7, 2011.

As of Jul 31, 2026, the fund held 42 securities; the ten largest made up 40.12% of assets. It also reported 13.17% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors withdrew a net $24.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.89%, -3.60%, -6.11%.

Dorsey, Wright & Associates builds the Dorsey Wright Basic Materials Technical Leaders Index, and Invesco's fund tracks it. The index starts with the 2,000 largest companies in the Nasdaq US Benchmark Index. Each stock gets a "momentum" score. The score compares the stock's price gains over medium and long periods with the market and with other eligible stocks. Momentum is the tendency of recent winners to keep outperforming for a while. The index then takes at least 30 of the highest-scoring stocks from the basic materials sector. These are companies that make chemicals, paper and wood products, construction materials, and metals, plus mining companies.

Stocks with higher scores get bigger weights. That means position sizes reflect price strength, not company size. As of June 30, 2026, the index held 42 stocks with market values from $683.1 million to $240.0 billion. The fund buys every stock in the index in the same proportions, a method called full replication. As of July 31, 2026, the largest holdings were ATI at 6.9% and Carpenter Technology at 6.8%, followed by Steel Dynamics and Nucor at close to 4% each. The top 10 made up 40% of the fund.

Scores change as prices move, so holdings change often. Portfolio turnover, a measure of how much of the fund is traded in a year, was 91%. The fund uses no leverage, swaps or options. It sells a stock only when the index drops it, even if the stock is falling.

• PYZ charges 0.6% a year, versus an average of 0.29% for the similar funds below (7th of 8, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.19% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $941 over 10 years (assuming a 5% annual return).

It is a concentrated, high-turnover momentum bet on one cyclical sector, and it has fallen hard more than once, so it fits better as a small add-on than a foundation.

PYZ adds a concentrated bet on U.S. steel, specialty metal, chemical and mining stocks. Its history shows how hard it can fall. It lost 65.2% from June 2008 to March 2009 and took 23 months from that low to recover. 2008 was its worst calendar year, at −43.6%. It dropped 42.3% in the 2020 COVID crash and recovered in about six and a half months. In 2022 it fell 33% and took almost 34 months from its September 2022 low to regain its peak in July 2025. Anyone who had to sell shares or draw cash during those stretches would have locked in deep losses.

Income is small: the yield was 0.5% as of October 27, 2026, paid quarterly. Costs are high for the category at 0.60% a year, or $941 over 10 years in the SEC's standard $10,000 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.