Invesco ETF Looks to Find Value in Emerging Markets

The video discusses Smart Beta ETFs, focusing on their value-oriented approach and country exposure differences compared to broad EM indices. It highlights the low PE ratio of these ETFs and their potential for growth when market conditions favor value investing. The discussion also covers the impact of inflation on value stocks and the potential for recovery in the oil and gas sector, particularly the PXJ ETF, which is sensitive to oil prices and has been underperforming due to ESG concerns.

What is a key characteristic of the smart Beta ETF launched in 2007?

• It focuses on technology stocks.

• It has a high price-to-earnings ratio.

• It leans towards value by considering cash flow and dividends.

• It primarily invests in South Korean companies.

How does the country exposure of the smart Beta ETF differ from the broad EM index?

• It has more exposure to South Korea.

• It has less exposure to Brazil and Russia.

• It has more exposure to Brazil and Russia, but none to South Korea.

• It has the same exposure to all countries as the broad EM index.

What is a reason for the underperformance of value strategies according to the discussion?

• Increased technology investments.

• Low inflation rates.

• High inflation rates.

• High interest rates.

What factor is PXJ particularly sensitive to?

• Oil prices

• Interest rates

• Technology sector performance

• Real estate market trends

What is the potential strategy for PXJ given its current valuation?

• Investing in technology stocks

• Focusing on high-growth markets

• Mean reversion play

• Avoiding energy sector investments