AWSAX
Invesco Global Core Equity-A
Global Diversification with a Tech Focus
The Invesco Global Core Equity-A (AWSAX) fund is designed to provide investors with long-term capital growth by investing in a diverse range of marketable equity securities from both domestic and international issuers. A standout feature of AWSAX is its significant allocation to the technology sector, which comprises 28.60% of its portfolio. This focus on technology aligns with the fund’s objective of capitalizing on growth opportunities in a rapidly evolving global market. The fund’s top holdings include major tech giants such as Microsoft Corp, Amazon.com Inc, and Apple Inc, which collectively represent a substantial portion of the portfolio. This strategic allocation not only positions the fund to benefit from technological advancements but also exposes it to the inherent volatility of the tech sector. Investors seeking global diversification with a strong emphasis on technology will find AWSAX an attractive option.
At A Glance
Executive Summary
AWSAX offers global equity exposure with a strong tech focus and a 1-year return of 29.25%, outperforming its benchmark.
Global diversification with exposure to leading tech stocks. Strong recent performance with a 1-year return of 29.25%. Managed by Invesco, a reputable fund family.
Higher expense ratio at 1.26% compared to peers. Lower yield at 0.24%, not ideal for income-focused investors. Potential volatility due to high tech sector allocation.
Impressive Recent Performance
AWSAX has demonstrated impressive performance, particularly over the past year, with a 1-year return of 29.25%. This performance significantly outpaces its benchmark, the MSCI ACWI xUS DivAdj Index, which posted a 1-year return of 17.25%. The fund’s ability to outperform its benchmark can be attributed to its strategic asset allocation and stock selection, particularly within the technology sector. The fund’s alpha of 11.99% indicates that it has generated returns above what would be expected based on its beta of 0.81, suggesting effective management and stock-picking skills. This strong performance makes AWSAX an appealing choice for investors looking for robust growth potential in their portfolios.
Risk Metrics and Volatility Management
AWSAX exhibits a relatively low beta of 0.81, indicating that it is less volatile than the broader market. This lower volatility is complemented by a Sharpe Ratio of 1.05, which suggests that the fund has been able to achieve a favorable risk-adjusted return. The fund’s standard deviation of 3.29% further underscores its ability to manage volatility effectively. Additionally, the fund’s downside risk, as measured by the Ulcer Index, is relatively low at 1.60, indicating that it has been able to limit losses during market downturns. These risk metrics highlight AWSAX’s potential as a stable investment option for those seeking growth with a controlled level of risk.
Comparative Analysis with Similar Funds
When compared to similar funds, AWSAX holds its ground with a competitive 1-year return of 29.25%. For instance, Victory Capital Growth (USCGX) and BlackRock Advantage Global-InvA (MDGCX) have slightly higher 1-year returns of 29.71% and 31.27%, respectively, but AWSAX’s performance remains commendable. However, AWSAX’s expense ratio of 1.26% is higher than those of its peers, such as BlackRock Advantage Global-InvA, which has an expense ratio of 0.96%. Despite this, AWSAX’s strong performance and global diversification may justify the higher cost for investors seeking exposure to a broad range of international equities.
Sector and Market Cap Allocation
AWSAX’s sector allocation is heavily weighted towards technology, which accounts for 28.60% of the portfolio, followed by industrials and financials at 15.78% and 14.59%, respectively. This allocation reflects the fund’s strategy to capitalize on sectors with high growth potential. In terms of market capitalization, the fund predominantly invests in extra-large cap companies, which make up 51.31% of the portfolio, providing stability and growth potential. Large cap stocks account for 30.99%, while medium cap stocks represent 10.73%. This diversified market cap allocation allows AWSAX to balance growth opportunities with stability, making it suitable for investors looking for a mix of established and emerging companies.
Expense Ratio and Yield Considerations
AWSAX has an expense ratio of 1.26%, which is relatively high compared to some of its peers. This higher expense ratio may be a consideration for cost-conscious investors. However, the fund’s strong performance may offset the higher costs for those prioritizing growth. The fund’s yield is relatively low at 0.24%, which may not appeal to income-focused investors. This low yield is a result of the fund’s focus on growth stocks, which typically reinvest earnings rather than distribute dividends. Investors seeking income may need to look elsewhere, but those focused on capital appreciation may find AWSAX’s growth potential worth the trade-off.
Max Drawdown and Recovery Analysis
AWSAX experienced a maximum drawdown of -6.2%, with a drawdown length of one month and a recovery length of zero months, indicating a swift rebound. This resilience in recovering from market dips is a positive indicator for investors concerned about potential losses. The fund’s ability to quickly recover from drawdowns can be attributed to its diversified portfolio and strategic asset allocation. The peak and valley dates, from July 16, 2024, to August 5, 2024, highlight a brief period of volatility, which the fund managed effectively. This quick recovery underscores AWSAX’s potential as a robust investment option for those wary of prolonged downturns.
Conclusion: A Strong Choice for Growth-Oriented Investors
In conclusion, the Invesco Global Core Equity-A (AWSAX) fund stands out as a compelling option for growth-oriented investors seeking global diversification with a strong emphasis on technology. Its impressive recent performance, effective risk management, and strategic sector allocation make it a noteworthy contender in the world large category. While the higher expense ratio and lower yield may deter some investors, the fund’s potential for capital appreciation and resilience in market downturns offer significant appeal. AWSAX is particularly suitable for investors looking to capitalize on global growth opportunities and willing to accept the associated risks for potential high returns.
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Futher Reading
https://finance.yahoo.com/quote/AWSAX/”>Yahoo: Invesco Global Core Equity-A
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