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.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $257.46 million, making it one of the average sized ETFs in the Broad Emerging Market ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Dorsey Wright Emerging Markets Technical Leaders Index.
The Dorsey Wright Emerging Markets Technical Leaders Index includes approximately 100 companies from the Nasdaq Emerging Markets Index that possess powerful relative strength characteristics and are domiciled in emerging market countries including, but not limited to Brazil, Chile, China, India, Indonesia, Philippines, South Africa, Thailand and Turkey.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for PIE are 0.90%, which makes it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 1.79%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Accton Technology Corp (Y0002S109) accounts for about 3.12% of total assets, followed by Taiwan Semiconductor Manufacturing Co Ltd (Y84629107) and Topco Scientific Co Ltd (Y8896T109).
PIE's top 10 holdings account for about 25.56% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Dorsey Wright Emerging Markets Momentum ETF has added roughly 35.45% so far, and it's up approximately 55.12% over the last 12 months (as of 07/09/2026). PIE has traded between $20.73 $34.30 in this past 52-week period.
The ETF has a beta of 0.81 and standard deviation of 21.20% for the trailing three-year period, making it a medium risk choice in the space. With about 114 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco Dorsey Wright Emerging Markets Momentum ETF is not a suitable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Emerging Markets Stock Index Fund ETF Shares (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard Emerging Markets Stock Index Fund ETF Shares has $121.33 billion in assets, iShares Core MSCI Emerging Markets ETF has $155.24 billion. VWO has an expense ratio of 0.06% and IEMG changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs
Bottom Line
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Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).