What One Advisor’s $12 Million Momentum ETF Reduction Could Signal for Growth Stocks

1 hour ago 3

Jonathan Ponciano, The Motley Fool

Sun, May 10, 2026 astatine 2:31 PM CDT 4 min read

On May 8, 2026, NewSquare Capital filed with the SEC to study the merchantability of 97,285 shares of the Invesco Dorsey Wright Momentum ETF (NASDAQ:PDP), an estimated $12.07 cardinal commercialized based connected quarterly mean pricing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated May 8, 2026, NewSquare Capital sold 97,285 shares of the Invesco Dorsey Wright Momentum ETF (NASDAQ:PDP) during the archetypal quarter. The estimated transaction worth was $12.07 million, calculated utilizing the mean closing terms for the quarter. The money reported holding 108,116 shares, worthy $13.05 million, astatine quarter-end.

What other to cognize

The merchantability reduced the PDP involvement to 1.13% of reportable 13F assets nether management.
Top holdings aft the filing:
- NYSEMKT:VTI: $116.94 cardinal (10.2% of AUM)
- NYSEMKT:VEU: $66.55 cardinal (5.8% of AUM)
- NYSEMKT:SCHX: $60.30 cardinal (5.3% of AUM)
- NYSEMKT:IJH: $33.46 cardinal (2.9% of AUM)
- NASDAQ:BND: $31.75 cardinal (2.8% of AUM)
As of May 7, 2026, PDP shares were priced astatine $139.28, up 37% implicit the past year, with a 7 percentage-point alpha versus the S&P 500.

ETF overview

Metric

Value

Price (as of marketplace adjacent May 7, 2026)	$139.28
One-year full return	37%
Dividend output (TTM)	0.1%
AUM	$1.5 billion

ETF snapshot

Investment strategy: PDP seeks to way the Dorsey Wright Technical Leaders Index, focusing connected U.S. equities exhibiting beardown comparative momentum characteristics.
Underlying holdings: The portfolio consists of astir 100 U.S. companies selected and rebalanced quarterly based connected proprietary momentum screening.
Expense ratio and structure: It has a passively managed ETF structure, designed for businesslike vulnerability to momentum equities; spot prospectus for interest details.

The Invesco Dorsey Wright Momentum ETF offers investors systematic vulnerability to U.S. equities demonstrating beardown comparative strength, utilizing a rules-based methodology to seizure momentum-driven performance. The fund's quarterly rebalancing ensures the portfolio remains aligned with prevailing marketplace enactment trends. This disciplined attack provides entree to a diversified acceptable of high-momentum stocks portion leveraging the liquidity and transparency of the ETF structure.

What this transaction means for investors

PDP delivered a 36.6% one-year NAV instrumentality done April 30 and outpaced the Russell 3000 Growth Index implicit one-, three-, and five-year periods, and that beardown momentum-driven rally mightiness beryllium portion of wherefore NewSquare decided to trim its involvement here. PDP’s strategy focuses connected astir 100 U.S. companies showing beardown comparative spot characteristics, with quarterly rebalancing designed to support the portfolio tilted toward marketplace leaders. Current apical holdings see names similar Comfort Systems USA, Apple, Amphenol, Quanta Services, and Western Digital.

For semipermanent investors, it’s important to retrieve that momentum strategies tin enactment highly good during beardown bull markets, but they besides thin to reverse rapidly erstwhile enactment changes. PDP’s attraction successful higher-growth sectors and comparatively elevated valuation metrics, including a price-to-earnings ratio supra 33, could permission the money much susceptible if marketplace sentiment shifts. And ultimately, NewSquare Capital inactive retained much than $13 cardinal worthy of shares astatine quarter-end, suggesting the steadfast is apt conscionable trimming vulnerability aft outsized gains.

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