XSHQ Profile
The Invesco S&P SmallCap Quality ETF aims to deliver targeted exposure to high-quality small-cap stocks by tracking an index focused on superior financial metrics. The fund typically invests at least 90% of its total assets in the securities that make up its underlying index. This index, maintained and calculated by S&P Dow Jones Indices LLC, is specifically crafted to capture the performance of approximately 120 securities within the S&P SmallCap 600 Index that exhibit the highest quality characteristics, as assessed by the index provider.
The index emphasizes high-quality small-cap companies based on several key financial criteria, including profitability, earnings stability, and balance sheet strength. By selecting stocks that meet stringent quality standards, the index aims to provide investors with exposure to smaller companies that demonstrate robust financial health and sustainable competitive advantages. This focus on quality is intended to help mitigate risk while targeting potential growth in the small-cap sector.
The fund's investment strategy is designed to provide investors with a portfolio of small-cap stocks that have been screened for quality, thereby potentially enhancing the risk-return profile compared to a broader small-cap index. The selection process considers factors such as return on equity, return on assets, and other financial indicators to identify companies that have demonstrated consistent performance and resilience.
Investors in the Invesco S&P SmallCap Quality ETF benefit from a curated approach to small-cap investing, where the emphasis is placed on companies with strong financial fundamentals and less susceptibility to volatility. This targeted strategy aims to capture the growth potential of small-cap equities while focusing on quality factors that may contribute to more stable returns over time. The funds adherence to rigorous quality criteria helps it align with investors seeking a more refined and risk-managed approach to small-cap investments.
|
