Core Viewpoint - Invesco Raymond James SB-1 Equity ETF (RYJ) employs a disciplined selection process for U.S. equities, focusing on companies with strong analyst conviction and improving fundamentals [1] Group 1: Investment Strategy - RYJ utilizes a transparent, rules-driven portfolio that undergoes periodic reconstitution to seek capital appreciation [1] - The strategy emphasizes firms with favorable analyst outlooks, leading to potential factor exposures skewed towards quality and momentum [1] - The fund may include mid- and small-cap stocks depending on the breadth of convictions at each rebalance [1] Group 2: Asset Allocation and Functionality - RYJ can serve as a return-seeking satellite alongside a broad core index or as a tactical overlay when investor conviction aligns with analyst upgrades [1] - The fund generally performs well in pro-cyclical phases when risk appetite increases and earnings revisions are positive [1] - It may underperform in defensive markets or when analyst sentiment is compressed [1] Group 3: Risks and Considerations - A specific risk associated with RYJ is its concentration in a relatively smaller set of conviction names, which can heighten idiosyncratic risk and increase turnover during list changes [1]