Invesco Dorsey Wright Momentum ETFPDP

The Invesco Dorsey Wright Momentum ETF (PDP) is a quarterly momentum screen that buys the 100 stocks with the strongest price momentum in the S&P 500 universe and rebalances every three months. The fund’s current top holding is NVIDIA at 4.8%, a position that reflects the stock’s 280% year-over-year surge rather than any forward-looking insight. The momentum mandate is mechanical: rank the stocks by six- and twelve-month total returns, select the top 100, and reset the portfolio without regard for valuation or fundamentals. The fund’s expense ratio is 0.59%, which is higher than the 0.20% charged by Invesco’s own equal-weight S&P 500 ETFs (QEW and RSP), proving that a glossy momentum story does not come cheap.

PDP’s AUM stands at $2.1bn, giving it enough liquidity to avoid the bid-ask death spiral but not enough leverage to negotiate its fee. Its distributor, Invesco Distributors, Inc., takes its cut without blinking, and the fund’s SEC filing reminds investors that momentum investing "involves risks including the potential for higher volatility and periods of lag". Translation: when the market stops chasing yesterday’s winners, PDP’s returns can look like yesterday’s news. The fund’s top ten-NVIDIA, Meta, Microsoft, Amazon, Apple, Alphabet, Tesla, Broadcom, Costco, and Mastercard-makes it feel less like a strategy and more like a cap-weighted index with a fee upgrade.

The fund’s marketing page claims ETFs are "cost-effective, tax-efficient tools for maximizing your investments", which is true if your definition of "maximizing" includes paying someone 59 basis points to chase last quarter’s winners. The issuer’s own equal-weight ETFs charge 0.20%, showing that a momentum wrapper isn’t cheaper-it’s just dressed up in a momentum story. PDP’s mandate and fee schedule are public, but the fund’s returns are not guaranteed to relative strength a simple buy-and-hold index after fees, especially when momentum rotates out of favour.

For a live quote and intraday chart, Nasdaq’s PDP page provides the latest market data, but remember: the chart reflects the momentum screen’s output, not its insight. The fund’s liquidity is adequate for most retail and institutional flows, but the fee drag remains a constant headwind. If you’re chasing momentum, you’re renting the theme; PDP is the landlord that takes its rent upfront.

The SEC filing does not hide the game: it’s a quarterly momentum screen applied to the S&P 500 universe, with turnover capped at 100% of the portfolio each rebalance. The filing even helpfully reminds investors that "momentum investing involves risks including the potential for higher volatility and periods of lag". Translation: when the market stops chasing yesterday’s winners, PDP’s returns can look like yesterday’s news. The fund’s current top ten-led by NVIDIA, Meta, Microsoft, and Amazon-makes it feel less like a strategy and more like a cap-weighted index with a fee upgrade.