The fund tracks the Dorsey Wright Technical Leaders Index and selects roughly 100 companies with high relative strength from the constituents of the Nasdaq US Benchmark Index. Rather than focusing on a company's underlying fundamentals, it builds a portfolio around technical price trends and market leadership.

It suits investors who prefer a momentum strategy that follows technical analysis and market-leading stocks over traditional fundamental analysis.

Invesco launched the ETF in 2007, and it is passively managed (index-tracking).

Dorsey Wright's proprietary quant model reselects the holdings every quarter. Rather than simply picking stocks that have risen the most, it selects those with stronger upward momentum relative to other stocks and allocates weights accordingly.

• Applies Dorsey Wright's Relative Strength methodology
• Flexible portfolio composition spanning large-cap and mid-cap stocks

Assets under management (AUM) stand at $1.4B, and the Expense Ratio is 0.62% per year.

Unlike typical momentum products such as MTUM and SPMO shown in the table, which rely only on past returns, PDP uses a technical indicator called relative strength to capture shifts in market leadership more sensitively.

When market-leading sectors are clear, the fund quickly adds the core stocks of those sectors and shows stronger momentum than the broader market. Recently, technically strong stocks in the industrial and technology sectors have been driving portfolio performance.

Money keeps flowing in from strategic investors who prefer trend-following trades. In particular, there is demand from investors who expect the model's stock rotation to pay off during transition periods when the market regime shifts.

Its strength is precise momentum capture based on technical analysis, but investors should be aware of the strategy's characteristically high costs and the expenses arising from frequent stock turnover.

MTUM and SPMO, shown in the table, are low-cost momentum alternatives centered on US large-cap stocks. If you want to focus on mid-cap momentum, you can consider XMMO, and if you want to extend the range to small caps, XSMO. JMOM, which combines a multi-factor model, is also worth considering.

Here is a checklist of key items to review before investing in PDP. It is advisable to decide after weighing the characteristics of a technical momentum strategy together with its high operating costs.

Because the relative strength model is based on historical data, it cannot predict sudden future market swings, and during periods when the strategy is out of favor, it may underperform the index over the long term.

It is a suitable product for investors who want to capture the essence of technical analysis in their portfolio, going beyond simple index investing. For investors who want to get ahead on the market's real leading stocks even at the price of high volatility and costs, it can be an excellent strategic tool.