Invesco FTSE RAFI Emerging Markets ETF is Underperforming Ahead of New Year

Omicron’s emergence has affected the global financial markets, and the stock market is feeling the effect. This has, in turn, affected the performances of some exchange-traded funds heading into the new year.

PXH Has Performed Well this Year

The Invesco FTSE RAFI Emerging Markets ETF has been around since 2007 and is a smart beta exchange-traded fund offering broad exposure to the Broad Emerging Market ETFs category of the stock market.

PHX is managed by Invesco and currently has more than $1.3 billion in assets under management, making it one of the larger ETFs in the Broad Emerging Market ETFs. Before fees and expenses, the fund is designed to match the performance of the FTSE RAFI Emerging Markets Index.

The FTSE RAFI Emerging Index tracks the performance of stocks in emerging markets. The stocks chosen have the highest ranking cumulative score, and they are selected from the constituents of the FTSE Emerging Large/Mid Cap Index.

PXH has performed well over the past few months. The fund has added more than 8% to its value since the start of the year and is currently trading close to the $22 mark. Operating expenses on an annual basis for this ETF are 0.50%. Thus, making it similar to most peer products in the space. PXH has a 12-month trailing dividend yield of 4.77%.

PXH Could Slip Below $20 Soon

PXH has underperformed recently, as it has lost less than 1% of its value over the past few hours. The Omicron variant of Covid-19 is affecting the global financial markets, and this could see PXH dip further ahead of the New Year.

If the market momentum is maintained, then PXH’s value could drop below the $20 mark over the coming trading sessions. The fund has a beta of 0.85 and a standard deviation of 23.37% for the trailing three-year period. These data make it a medium-risk choice in the space.

This article was originally posted on FX Empire

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