This Investor Sold $12 Million of a Momentum Bet, Signaling Cooling Appetite for High-Flying Stocks

On February 17, 2026, NewSquare Capital reported selling 101,997 shares of the Invesco DWA Momentum ETF (PDP +1.83%), with an estimated transaction value of $12,015,964 based on quarterly average pricing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, NewSquare Capital LLC reduced its position in the Invesco DWA Momentum ETF (PDP +1.83%) by 101,997 shares during the fourth quarter of 2025. The estimated transaction value was $12,015,964, calculated using the average closing price for the quarter. The fund’s stake ended the period at 205,401 shares, with a market value of $23,909,560.

What else to know

• Top five holdings after the filing:
  • NYSEMKT:VTI: $118.29 million (10.4% of AUM)
  • NYSEMKT:VEU: $64.04 million (5.6% of AUM)
  • NYSEMKT:SCHX: $61.27 million (5.4% of AUM)
  • NYSEMKT:IJH: $32.31 million (2.8% of AUM)
  • NASDAQ:BND: $30.50 million (2.7% of AUM)
• As of February 17, 2026, shares were priced at $126.84, up 9.4% over the past year, underperforming the S&P 500 by 2.23 percentage points. The fund has performed better since, now up about 23% for the year.

ETF overview

ETF snapshot

• PDP’s investment strategy focuses on tracking the Dorsey Wright® Technical Leaders Index, emphasizing momentum-driven U.S. equities among the largest NASDAQ-listed companies.
• The portfolio typically consists of approximately 100 securities selected for strong relative strength characteristics, offering diversified exposure across sectors within the U.S. equity market.
• It’s structured as an exchange-traded fund with a transparent, passively managed approach and a competitive expense ratio designed for cost-efficient access to momentum investing.

The Invesco DWA Momentum ETF provides investors with systematic exposure to U.S. equities demonstrating high relative strength, leveraging a quantitative methodology to capture market momentum. The fund’s disciplined rules-based approach and broad portfolio composition aim to enhance returns while maintaining diversification. As a large, liquid ETF, PDP offers institutional investors an efficient vehicle for implementing momentum strategies within core or tactical allocations.

What this transaction means for investors

The Invesco Dorsey Wright Momentum ETF is built to chase relative strength, reallocating into stocks that have already been outperforming peers. That approach has historically delivered strong returns during sustained bull runs, but it also comes with sharper reversals when market leadership changes. The portfolio currently holds about 100 names and rebalances quarterly, meaning it is constantly rotating into recent winners rather than long-term compounders.

The fund’s recent performance has been solid but not dominant. The fund posted roughly a 20% one-year return at NAV, but it has still lagged the broader market slightly over that stretch. Valuations, meanwhile, remain elevated, with a price-to-earnings ratio in the low 30s, reflecting the premium investors often pay for high-momentum names.

And within the broader portfolio, the shift looks consistent. Core allocations lean heavily toward diversified index exposure across U.S. and global equities. Momentum strategies can be a helpful tool, but they certainly aren’t core holdings like these other picks.