PDP vs. MMTM
Compare and contrast key facts about Invesco DWA Momentum ETF (PDP) and SPDR S&P 1500 Momentum Tilt ETF (MMTM).
PDP and MMTM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PDP is a passively managed fund by Invesco that tracks the performance of the Dorsey Wright Technical Leaders Index. It was launched on Mar 1, 2007. MMTM is a passively managed fund by State Street that tracks the performance of the S&P 1500 Positive Momentum Tilt Index. It was launched on Oct 24, 2012. Both PDP and MMTM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PDP or MMTM.
Key characteristics
| PDP | MMTM | |
|---|---|---|
| YTD Return | 10.54% | 10.39% |
| 1Y Return | 25.92% | 30.28% |
| 3Y Return (Ann) | 2.91% | 9.54% |
| 5Y Return (Ann) | 10.58% | 13.61% |
| 10Y Return (Ann) | 10.18% | 14.80% |
| Sharpe Ratio | 1.82 | 2.32 |
| Daily Std Dev | 14.95% | 13.53% |
| Max Drawdown | -59.34% | -33.85% |
| Current Drawdown | -5.53% | -3.46% |
Correlation
The correlation between PDP and MMTM is 0.73, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
PDP vs. MMTM - Performance Comparison
The year-to-date returns for both stocks are quite close, with PDP having a 10.54% return and MMTM slightly lower at 10.39%. Over the past 10 years, PDP has underperformed MMTM with an annualized return of 10.18%, while MMTM has yielded a comparatively higher 14.80% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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PDP vs. MMTM - Expense Ratio Comparison
PDP has a 0.62% expense ratio, which is higher than MMTM's 0.12% expense ratio.
Risk-Adjusted Performance
PDP vs. MMTM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco DWA Momentum ETF (PDP) and SPDR S&P 1500 Momentum Tilt ETF (MMTM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
PDP vs. MMTM - Dividend Comparison
PDP's dividend yield for the trailing twelve months is around 0.27%, less than MMTM's 0.95% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PDP Invesco DWA Momentum ETF | 0.27% | 0.42% | 0.45% | 0.00% | 0.11% | 0.25% | 0.18% | 0.28% | 0.81% | 0.39% | 0.15% | 0.28% |
MMTM SPDR S&P 1500 Momentum Tilt ETF | 0.95% | 1.16% | 1.67% | 0.95% | 1.14% | 1.55% | 1.64% | 1.52% | 1.98% | 1.68% | 1.54% | 1.74% |
Drawdowns
PDP vs. MMTM - Drawdown Comparison
The maximum PDP drawdown since its inception was -59.34%, which is greater than MMTM's maximum drawdown of -33.85%. Use the drawdown chart below to compare losses from any high point for PDP and MMTM. For additional features, visit the drawdowns tool.
Volatility
PDP vs. MMTM - Volatility Comparison
Invesco DWA Momentum ETF (PDP) and SPDR S&P 1500 Momentum Tilt ETF (MMTM) have volatilities of 4.72% and 4.79%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.