Invesco Dorsey Wright Basic Materials Momentum ETF

PYZ

Market cap $84.5M

Invesco Dorsey Wright Basic Materials Momentum ETF offers exposure to basic materials stocks exhibiting momentum characteristics. Heavy in metals & mining and chemicals, PYZ could be a vehicle to consider for exposure to inflation beneficiaries that look poised for outperformance amid supply chain disruptions. However, PYZ's historical performance warrants caution, as the ETF has underperformed XLB and IVV since 2014, delivering much higher volatility and deeper maximum drawdowns.

Some may doubt the Santa Rally this year amid AI overvaluation and inflation woes. Low P/E momentum ETFs -- XMVM, XSVM, PYZ, VAMO -- offer a balanced year-end play.