PTH - Invesco DWA Healthcare Momentum ETF
PTH provides an alternate take on US healthcare firms, with a lot of emphasis on the biotech and research sector compared to our more pharma and provider-focused neutral benchmark. PTH has been around for a while, but changed indexes in 2014 to adopt a momentum-weighted Dorsey-Wright relative strength index. This has contributed to the fund's sharp pivot away from neutral segment exposure toward growth sectors. Unsurprisingly, the fund tilts small, and carries considerably more risk. The fund selects the top, at least 30 stocks, with the highest momentum scores in the healthcare space. The fund uses a full replication indexing strategy, meaning PTH will generally invest in all of the stocks of the underlying index and in proportion to the weightings. Overall, PTH offers a different, growth-focused take on healthcare. Investors should consider all-in costs of holding the fund. The fund is reconstituted and rebalanced quarterly.