There are changes to four Invesco models this week.

There are changes to four Invesco models this week, the DWA Global Factor Model GLOBALFACTOR, Invesco Small Cap Sector Model POWERSMALL, the DWA Sector Four Model POWER4, and the Invesco Dynamic Equal Weight Sector Model GUGGEWSECT.  

GLOBALFACTOR added the Invesco DWA Momentum ETF PDP, Invesco DWA Smallcap Momentum ETF DWAS, Invesco S&P 500 Low Volatility ETF SPLV, and the Invesco S&P Smallcap Low Volatility ETF XSLV. Prior to this change the model portfolio had been 100% cash because both domestic equities and international equities were ranked below cash in the DALI asset class rankings. Since the last model evaluation, domestic equities has overtaken cash and fixed income to retake the top spot in the rankings and therefore the model has once again added exposure to domestic equities. The momentum funds – PDP and DWAS – are overweight relative to the low volatility funds because domestic equities ranks number one in the DALI rankings. If domestic equities were ranked third or lower, the low volatility funds would instead have the higher allocation. The model currently retained a 30% allocation to cash because international equities remain below cash in the DALI asset class rankings.

POWERSMALL removed the Invesco S&P Smallcap Energy ETF PSCE and added the Invesco S&P Smallcap Healthcare ETF PSCH. PSCE was removed because its rank in the model’s relative strength matrix fellow below the threshold to remain a holding in the portfolio. In place of PSCE, the model added PSCH as it was the highest-ranking fund in the matrix that was not already a holding in the portfolio. The full model holdings are displayed below.

POWER4 removed the Invesco DWA Healthcare Momentum ETF PTH and added the Invesco DWA Industrials Momentum ETF PRN. PTH was removed because healthcare fell out of the top four in the model’s sector rankings. In place of PTH, the model added PRN because industrials moved into the top four sectors in the rankings. The model now has exposure to consumer cyclicals, industrials, energy, and technology.

GUGGEWSECT removed the Invesco S&P Equal Weight Energy ETF RYE and added the Invesco S&P Equal Weight Health Care ETF RYH. RYE was removed because energy fell out of the top three in the model’s sector rankings. In place of RYE, the model added RYH as healthcare is now the third-ranked sector in model rankings. The model now has exposure to consumer cyclicals, technology, and healthcare.