DIVG Profile
The Invesco Exchange-Traded Fund Trust II - S&P 500 High Dividend Growers ETF (DIVG) employs a passive management strategy aimed at investing in U.S. companies that demonstrate both a strong history of dividend payments and significant projected growth in dividend yields. This ETF is designed to track an index that identifies top-performing dividend-paying companies within the S&P 500 Index, focusing on those with a proven record of consistent dividend increases and high forecasted dividend growth.
To be eligible for inclusion in the underlying index, a stock must meet specific criteria, including a positive forecasted dividend yield and a history of increasing or maintaining dividend payments for at least five consecutive years. The index screens the S&P 500 for companies that fit these criteria and selects the top 100 based on their forecasted dividend yield growth. This forward-looking approach ensures that the ETF is invested in companies with strong potential for future dividend increases, rather than relying solely on historical dividend data.
The ETF’s index uses forecasted dividend yields to determine the weightings of constituent stocks, diverging from traditional methods that rely on past dividend data. Each stock is weighted according to its forecasted dividend yield, with individual stock weights capped at 4% to prevent overconcentration and sector weights capped at 30% to maintain diversified exposure across industries. This methodology aims to balance the portfolio, providing robust exposure to high-growth dividend-paying companies while managing risk.
Rebalancing of the index occurs semi-annually, in April and October, to ensure that the ETF reflects the most current data on dividend yield forecasts and company performance. By maintaining this schedule, the Invesco S&P 500 High Dividend Growers ETF aims to adapt to changing market conditions and continue offering investors exposure to high-potential dividend growth opportunities in the U.S. equity market.
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