Invesco Dorsey Wright Healthcare Momentum ETF (PTH) Covered Calls

The Invesco Dorsey Wright Healthcare Momentum ETF (PTH) tracks the Dorsey Wright Healthcare Technical Leaders Index, selecting at least 30 U.S. healthcare companies based on relative strength (momentum) characteristics. The fund aims to capture high-performing healthcare stocks across various market caps by focusing on price leadership rather than fundamental valuation.

You can sell covered calls on Invesco Dorsey Wright Healthcare 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 PTH (prices last updated Mon 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Core Business and Products

The Invesco Dorsey Wright Healthcare Momentum ETF (PTH) is a tactical, factor-based investment vehicle that utilizes a technical "relative strength" methodology. Instead of traditional sector weighting, PTH follows the Dorsey Wright® Healthcare Technical Leaders Index, which identifies companies that are outperforming their peers within the healthcare universe. This approach allows the fund to shift dynamically between sub-sectors—such as biotech, medical devices, or managed care—based on where the strongest price trends are emerging.

By 2026, the fund maintains a lean portfolio of approximately 55 to 60 holdings. Due to its momentum-heavy mandate, the fund is currently dominated by Biotechnology (60%) and Health Care Providers & Services (17.5%). Key holdings in 2026 include high-momentum names such as Roivant Sciences (ROIV), HCA Healthcare (HCA), Terns Pharmaceuticals (TERN), and Praxis Precision Medicines (PRAX). The fund's primary "product" is this aggressive trend-following strategy, which seeks to maximize capital appreciation by staying invested in the market's current winners.

Competitive Landscape

PTH competes in a specialized corner of the healthcare market, primarily against broader sector funds and other factor-based ETFs. In 2026, its primary rivals include:

1. Health Care Select Sector SPDR ETF (XLV): The industry giant. While XLV offers broad exposure to mega-cap healthcare (e.g., UnitedHealth, Eli Lilly), PTH offers a more volatile, momentum-driven tilt that often emphasizes small and mid-cap biotechnology.

2. Vanguard Health Care ETF (VHT): A low-cost alternative for broad sector exposure. It provides a highly diversified portfolio of over 400 stocks, contrasting with PTH's concentrated, 60-stock momentum strategy.

3. iShares Biotechnology ETF (IBB): A direct rival for the biotechnology-heavy portion of PTH's portfolio, often used by investors looking for pure-play biotech exposure rather than a multi-disciplinary momentum mix.

4. Invesco S&P SmallCap Health Care ETF (PSCH): An internal rival that focuses exclusively on the small-cap segment of healthcare. While PSCH is cheaper (0.29% fee), it lacks the technical momentum overlay used by PTH (0.60% fee).

5. SPDR S&P Biotech ETF (XBI): A popular equal-weighted biotech fund that competes with PTH for "risk-on" growth capital during bullish cycles in medical innovation.

Strategic Outlook and Innovation

The strategic value of PTH in 2026 is its ability to serve as a sector rotation engine. In an era where AI-driven drug discovery and genomic medicine are rapidly disrupting traditional pharma, PTH’s technical screen naturally gravitates toward the companies that the market is "voting for" with its capital. The 2026 outlook is focused on the fund's resilience during period of high interest rates, where its momentum filter helps it avoid stagnant legacy providers in favor of lean, high-growth clinical-stage firms.

For the active investor, PTH is technically optionable, but liquidity is significantly lower than that of **XLV** or **XBI**. While an options chain exists for PTH, the spreads are wide and the volume is thin, making it a challenging candidate for high-frequency trading. Most sophisticated income-seekers utilize PTH for its capital appreciation potential, while using more liquid vehicles like XBI or IBB if they specifically want to write covered calls in the biotech/healthcare space.

Want more examples? PTGX Covered Calls | PTIN Covered Calls