DWAS ETF

DWAS provides access to small- and mid-cap stocks that show strong momentum. However, its approach of focusing on high-performing SMID stocks has not led to significant and steady outperformance in the past. Its past risk-adjusted returns are considerably lower than those of IVV and IJR, mainly due to its volatility, which may be affected by lower quality.

It looks like interest rate cuts are on the way as the U.S. economy experienced a significant slowdown in July. Analysts are now predicting a possible 50 basis point cut in September, with the chance of additional cuts following that.

Invesco Dorsey Wright SmallCap Momentum ETF holds 199 small caps selected and weighted based on a proprietary momentum score. The DWAS ETF is overweight in industrials and healthcare, but well-diversified across holdings. Based on quality metrics and price history, DWAS has a high-risk/high-reward profile.