Invesco Emerging Markets Sovereign Debt ETF PCY employs a simple but somewhat arbitrary process that tilts its portfolio toward riskier bonds and limits diversification. As a result, its portfolio isn’t representative of its investment opportunity set. Nor does its complexion resemble that of its emerging-markets bond Morningstar Category peers. It earns a Morningstar Analyst Rating of Neutral.
Will PCY outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable PCY’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the PCY management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of PCY’s parent organization’s priorities and whether they’re in line with investors’ interests.