PRF Profile
The Invesco FTSE RAFI US 1000 ETF is designed to provide investors with exposure to a diversified portfolio of large-cap U.S. stocks by tracking the performance of the FTSE RAFI US 1000 Index. The fund invests at least 90% of its total assets in the securities that make up this index. The index is meticulously constructed by FTSE International Limited and Research Affiliates LLC, utilizing a rigorous selection process based on four fundamental measures: book value, cash flow, sales, and dividends.
The underlying index includes 1,000 of the largest U.S. companies, selected according to their fundamental financial metrics rather than traditional market capitalization. This methodology aims to capture a broad representation of large-cap equities, providing a comprehensive overview of the largest and most financially robust firms in the U.S. market. By focusing on fundamental measures, the index seeks to identify companies with strong financial health and sustainable performance.
The fund’s investment strategy revolves around this index's systematic approach, which prioritizes companies with significant book value, robust cash flow, substantial sales, and consistent dividend payments. This focus on fundamental factors helps to mitigate some of the risks associated with market volatility and can provide a more stable investment profile compared to market-cap-weighted indices.
By adhering to the index's guidelines, the Invesco FTSE RAFI US 1000 ETF offers investors a disciplined approach to gaining exposure to large-cap U.S. equities. The fund's commitment to fundamental investing principles aims to deliver long-term growth potential while aligning with the index's objective of capturing the financial strength and stability of major U.S. corporations.
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