Invesco International Dividend Achievers ETF

PID

Market cap $915M

OSAKA, Japan & CAMBRIDGE, Mass.--(BUSINESS WIRE)--Takeda announced that TAK-881-3001, a pivotal Phase 2/3 clinical trial in Primary Immunodeficiency Disease (PID) patients, met its primary endpoint.

Invesco International Dividend Achievers ETF (PID) remains rated Sell due to high fees, average performance, and lackluster dividend growth. PID is heavily concentrated in Canadian equities, has uncompelling fundamentals and risk-adjusted performance compared to the international benchmark IXUS. Some competitors offer similar or better risk-adjusted performance with a lower expense ratio.

I rate PID a sell due to lagging performance, high fees, and weak fundamentals compared to peer international dividend ETFs like VYMI. PID's top holdings suffer from unattractive valuations, high payout ratios, and low growth, weighing down the fund's outlook and dividend sustainability. VYMI stands out with lower fees, higher yield, better diversification, and stronger fundamentals among its top holdings, making it a superior alternative.

DWX, DFND, FID, FDD and PID are included in this Analyst Blog.

Several dividend ETFs beat the S&P 500 over the past month. International investing hogged attention in this regard.

Invesco International Dividend Achievers ETF invests in nearly 50 international dividend growth stocks, but has a high expense ratio of 0.53%. PID has a strong focus on Canadian stocks, especially in energy, communication services, and utilities, introducing geographic concentration risk. PID's performance is comparable to VIGI, but its high sensitivity to interest rates and U.S. trade policies introduces significant risks.

The Invesco International Dividend Achievers ETF holds about 50 international dividend growth stocks, heavily overweight in Canada and diversified across sectors. PID is attractively valued compared to the S&P 500 but has underperformed both U.S. and ex-U.S. equity benchmarks, and shows higher volatility. PID's historical performance and higher fees make it less appealing compared to other dividend quality ETFs.

Invesco International Dividend Achievers ETF tracks non-US stocks with increasing annual dividend payments for at least five years. The PID fund has a large-cap tilt, with holdings in companies like Atlantica Sustainable Infrastructure PLC and Brookfield Renewable Partners LP. PID has a large allocation to the Utilities sector, with 55% exposure to Canada, but offers access to diversified foreign stocks with dividend growth potential.

Invesco International Dividend Achievers ETF invests in international stocks with growing dividends. The PID ETF has a tilt towards large and mega cap companies and is overweight in Canada. Valuation looks attractive relative to the U.S. market, yet PID performance is underwhelming, regarding both return and dividend growth.

The Invesco International Dividend Achievers ETF is a $1bn product that covers 50 international stocks, including ADRs and GDRs. PID compares unfavorably to the Invesco Dividend Achievers ETF which focuses only on a larger pool of domestic dividend achievers. PID's heightened Canadian exposure is useful, but developments on the charts, and the valuations dampen the long case even further.