

The Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) was launched on 12/28/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Emerging Market ETFs category of the market.

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The Invesco Dorsey Wright Emerging Markets Momentum ETF targets high relative strength stocks, with a heavy tilt toward Taiwan and technology. Despite a recent rally, PIE has underperformed EEM since inception, with higher volatility and drawdowns. Multi-factor ETFs like AVEM, FNDE, and EMGF offer better fees, liquidity, and risk-adjusted returns than PIE for emerging markets exposure.

Vanguard FTSE Emerging Markets ETF and Invesco DWA Emerging Markets Momentum ETF use different indices to invest in emerging market stocks. The choice of index affects country, market-cap, and sector allocations, but neither strategy has consistently outperformed. I rate the VWO ETF as a buy as a core EM ETF. I think there are better funds to actively invest in EM stocks than PIE offers; look elsewhere.

A total of nine funds launched during the week ending Sept. 1, thus a dip after the 17 ETF launches last week but not unusual in the leadup to a holiday weekend.

Smart Beta ETF report for PIE

Smart Beta ETF report for PIE