There are no changes to be made within either of the Dorsey Wright Invesco Models this week, as each of the current holdings continues to maintain positive relative strength within the respective universes. Today we review those funds with scores over 5.00.
On April 6, 2018, Guggenheim Investments closed the sale of its ETF business to Invesco, Ltd. The Guggenheim ETFs have been transitioned, or are in the process of being transitioned to become part of the Invesco fund family. Please visit invesco.com for information concerning the ETFs.
There are no changes to be made within either of the Dorsey Wright Invesco Models this week, as each of the current holdings continues to maintain positive relative strength within the respective universes.
Today we will review some of the top scoring ETFs within the Invesco lineup and go over some of the more popular metrics used on the platform. Currently, there are 11 ETFs scoring above 5 within the lineup, which can be seen in the image below. Remember, fund scores range from 0-6, with 6 being the best score possible. The composition of score can be broken down into three components: trend, relative strength versus the market, and relative strength versus its peers. Direction measures the improvement or deterioration in score within the past six months. A positive number indicates improvement while a negative number indicates deterioration from a trough or peak in score. OBOS (%) stands for overbought/oversold percentage, which looks at the price relative to the 10-week moving average and is synonymous with weekly distribution that you will see on the platform. This percentage is seen visually as where the security falls within the Top, Med, and Bot on the right-hand side of a Point & Figure chart. rRisk measures the three-year volatility of a security relative to the S&P 500 Index SPX. The SPX will always have an rRisk of 1 so if a security is greater than one, it carries more risk and vice versa. Those of you familiar with Beta can strip out the correlation component essentially and then you have rRisk. Yield is simply the dividend paid by owning shares of these securities. Those looking to put money to work could consider these 11 funds for long ideas; however, it is advised to consult the Point & Figure chart before making a decision. To read more on these funds, visit the Invesco website at www.invesco.com.
