XSHD Profile
The Invesco S&P SmallCap High Dividend Low Volatility ETF aims to provide investment results that correspond to the performance of the S&P SmallCap 600 High Dividend Low Volatility Index. This index focuses on small-cap stocks within the S&P SmallCap 600 Index that are distinguished by their high dividend yields and lower volatility relative to other small-cap stocks. The ETF is designed for investors seeking income and stability from small-cap equities, combined with a focus on dividends.
The fund commits to investing at least 90% of its total assets in the securities that comprise the underlying index. This index includes approximately 60 small-cap stocks from the broader S&P SmallCap 600 Index, specifically selected for their historical performance in delivering high dividend yields while maintaining relatively lower volatility. This selection process aims to capture the benefits of high income with reduced price fluctuations compared to more volatile small-cap stocks.
The S&P SmallCap 600 High Dividend Low Volatility Index is composed of small-cap companies that not only offer attractive dividend yields but also exhibit less price variability. By focusing on these characteristics, the index seeks to provide a stable income stream while mitigating the risks typically associated with smaller, more volatile stocks. The Invesco ETF, through its adherence to this index, offers investors a targeted approach to gain exposure to high-yielding, low-volatility small-cap stocks.
As a result of its investment strategy, the Invesco S&P SmallCap High Dividend Low Volatility ETF caters to investors looking for both income and stability within the small-cap segment of the market. Its concentrated focus on dividend-paying, low-volatility stocks reflects a strategic approach aimed at providing a more stable and reliable investment return. The ETF is particularly suited for those seeking to balance the potential growth of small-cap equities with the income benefits of high dividends and reduced risk.
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