Understand any stock in simple English
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It is an exchange-traded fund that holds a basket of financial-sector stocks chosen for their price momentum.
This is not a normal company that makes or sells things. It is an exchange-traded fund, a ready-made basket of stocks that trades on the Nasdaq under the ticker PFI. The fund focuses on one slice of the market: financial companies such as banks, insurers, and asset managers. When you buy a share, you are buying a tiny piece of a whole collection of those businesses at once, without having to pick individual stocks yourself.
What makes this fund different from a plain financial-sector index is the "momentum" part. Instead of just holding every financial stock by size, it uses a rules-based strategy from Dorsey Wright, a research firm known for technical stock screening. The fund ranks financial stocks by how strongly their prices have been trending upward and leans toward the ones with the most momentum, rebalancing periodically. The idea is that stocks moving up tend to keep moving up for a while — a bet on price trends rather than on cheap valuations or dividends. Invesco, a large global asset manager headquartered in the United States, runs the fund and collects a small annual fee from investors for doing so. The customers here are mainly individual investors, financial advisers, and traders who want targeted exposure to financial stocks with a momentum tilt, and who prefer the ease of buying it like a single stock during market hours. It competes with other financial-sector ETFs and with broader momentum funds. The honest catch is that momentum strategies can swing hard. When financial stocks are hot, this fund is built to ride that wave; when the trend reverses, it can fall faster than a calmer index fund. It is also a concentrated, niche product rather than a core holding, so it suits people with a specific view on financials and an appetite for a bumpier ride.
Saved answer · last researched 22 Oct 2026
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