There are changes to four Invesco models this week. The NDW Sector 4 Model (POWER4) sold the Invesco  NDW Financial Momentum ETF (PFI) and bought the Invesco NDW Energy Momentum ETF (PXI). PFI was sold because financials dropped out of the top four in the model’s relative strength sector rankings. In its place, the model added PXI as energy has moved into the top three in the rankings. PXI currently has a favorable 4.44 fund score and a positive 3.35 score direction. Year-to-date (through 2/27) the fund has gained 19.22% on a price return basis and carries a 1.6% yield. In addition to PXI, POWER4 also has exposure to materials, industrials, and technology. Year-to-date, the model has gained 13.92% while the S&P 500 (SPX) is up around 0.5%.

The Invesco Dynamic Equal Weight Sector Model (GUGGEWSECT) sold the Invesco S&P Equal Weight Technology ETF (RSPT) and bought the Invesco S&P Equal Weight Energy ETF (RSPG). RPT was sold because technology dropped out of the top three in the model’s sector rankings. Meanwhile, RSPG was added as energy has moved into the top three in the rankings. RSPG currently has a favorable 4.58 fund score and a positive 3.66 core direction. Year-to-date, the fund has gained 25.38% on a price return basis and carries a 2.3% yield. In addition to RSPG, GUGGEWSECT also has exposure to industrials and materials. Year-to-date, the model has gained 7.9%.

The Invesco Special Opportunities Model (GUGGSO) sold the Invesco China Technology ETF (CQQQ) and bought the Invesco S&P Spin-off ETF (CSD). CQQQ was sold because its rank in the model’s relative strength matrix fell below the threshold to remain a holding in the portfolio. In its place, the model added CSD as it was the highest-ranking fund in the matrix that was not already a model holding. CSD currently has a near-perfect 5.91 fund score, and a positive 1.08 score direction. Year-to-date, the fund has gained 21.14% on a price return basis. In addition to CSD, the model also has exposure to buybacks, the S&P 500, the S&P 500 top 50, and solar. Year-to-date, the model has gained 1.39%.

The NDW Global Factor Model (GLOBALFACTOR) increased its exposure to the international equity funds in its inventory and reduced its exposure to its domestic equity funds. This change occurred because international equities now rank ahead of domestic equities in the DALI asset class rankings. Because domestic equities are in second place in the DALI rankings, domestic momentum is still overweight relative to domestic low volatility. If domestic equities ranked third or lower low volatility would be overweight relative to momentum. Similarly, because international equities rank first, international momentum is overweight relative to international low vol. Year-to-date, GLOBALFACTOR has gained 9.93%.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time to give us a general picture of whether the Invesco ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell.

Legend:

• UPPERCASE indicates that the RS chart is on a buy signal.
• lowercase indicates that the RS chart is in a sell signal.
• GREEN lettering indicates the ETFs trend chart is on a buy signal.
• RED lettering indicates the ETF is on a sell signal.
• Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

The table below is a review of important technical data on a select group of Invesco ETFs. Significant changes within the past week are highlighted in Green if positive or Red if negative. This portfolio is designed to be used as a "radar" screen to bring your attention to potentially important technical changes that may require your attention and potential action. Below this week's featured portfolio is the ability to see other Invesco portfolios including Market, Sector, International, Dynamic family, and RAFI family. 

* - Dates prior to 1/24/2011, which is when the Invesco Sector Seven ETF Model Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 6/1/10, which is when the Invesco Small Cap Sector Model ETF Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 6/7/13, which is when the DWA Global Technical Leaders Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 8/31/15, which is when the Invesco Multi Factor Global Equity Model became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 10/14/08, which is when the Invesco Special Opportunities Model ETF Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 8/15/2017, which is when the Invesco Dynamic Equal Weight Sector Model became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.