Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) Covered Calls

The Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) is a rules-based exchange-traded fund that tracks the Dorsey Wright Developed Markets Technical Leaders Index. It provides exposure to approximately 100 large-cap companies in developed markets outside the United States that demonstrate powerful relative strength (momentum) characteristics.

You can sell covered calls on Invesco Dorsey Wright Developed Markets Momentum ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PIZ (prices last updated Fri 4:16 PM ET):

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Core Business and Products

The Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) is a tactical international equity fund that utilizes a proprietary "relative strength" methodology. Instead of traditional market-cap weighting, PIZ follows the Dorsey Wright® Developed Markets Technical Leaders Index, which identifies and weights companies based on their price performance relative to other stocks in the developed world (excluding the U.S.). This momentum-driven approach allows the fund to dynamically rotate into countries and sectors that are currently leading the market.

As of 2026, the fund is heavily tilted toward Financials (37%) and Industrials (35%), reflecting the strong cyclical momentum in those sectors globally. Geographically, its largest exposures are in Canada (18%), Switzerland (13.7%), and the United Kingdom (10.3%). Key holdings in 2026 include high-momentum international giants such as ASML Holding, ABB Ltd., and Rolls-Royce Holdings. The "product" PIZ provides is a disciplined, trend-following way to capture international growth without the drag of lagging "value" segments often found in broad international benchmarks.

Competitive Landscape

PIZ competes in the "International Large-Cap Growth" and "Momentum" categories. Its primary 2026 rivals include:

1. iShares MSCI EAFE ETF (EFA): The broad-market giant. While EFA provides standard exposure to international developed markets, it is market-cap weighted and lacks the aggressive momentum screen of PIZ. EFA is significantly more liquid.

2. iShares MSCI Intl Momentum Factor ETF (IMTM): A direct factor-based competitor with a lower expense ratio (0.30% vs PIZ’s 0.80%). IMTM uses a different momentum calculation based on the MSCI index family.

3. Vanguard FTSE Developed Markets ETF (VEA): A low-cost alternative for broad international exposure. Investors often use VEA as a core holding while using PIZ as a "satellite" to capture technical trends.

4. Alpha Architect Intl Quantitative Momentum ETF (IMOM): A boutique rival that uses a highly concentrated momentum and "quality" screen, often exhibiting even higher volatility than PIZ.

5. Invesco S&P International Developed Momentum ETF (IDMO): An internal rival from Invesco that tracks an S&P index rather than the Dorsey Wright technical index, generally offered at a lower price point.

Strategic Outlook and Innovation

The strategic value of PIZ in 2026 is its role as a systematic trend-follower for global markets. Because the fund rebalances quarterly based on relative strength, it naturally moves away from declining regions and into areas showing resilience, such as the 2026 surge in European industrial automation. However, this high-turnover strategy (often exceeding 100%) can lead to higher tax liabilities and requires an expense ratio of 0.80%, which is on the higher end for passive technical funds.

For the tactical investor, PIZ is technically optionable, but liquidity is very thin. While an options chain exists, open interest is often concentrated in just a few strikes, and bid-ask spreads are wide. For those looking to implement covered call strategies in international momentum, it is often more efficient to use more liquid vehicles like EFA or EWG (Germany), or to target the individual ADRs of the fund's top holdings like ASML.

Want more examples? PIPR Covered Calls | PJP Covered Calls