XSLV Profile
The Invesco S&P SmallCap Low Volatility ETF is strategically designed to offer investors exposure to smaller companies with lower volatility characteristics. The fund generally allocates at least 90% of its total assets to the securities that constitute its underlying index. This index is meticulously compiled, maintained, and calculated by S&P Dow Jones Indices LLC, with the specific aim of tracking the performance of approximately 120 small-cap stocks from the S&P SmallCap 600 Index that have demonstrated the lowest levels of volatility over the past year.
The underlying index focuses on identifying small-cap companies that exhibit less price fluctuation compared to their peers, based on historical volatility measures. This approach is intended to provide investors with a more stable investment experience within the small-cap sector, which is typically characterized by higher volatility. By targeting stocks with lower volatility, the index aims to mitigate some of the inherent risks associated with investing in smaller companies.
Invesco's fund strategy prioritizes stocks that have shown consistent performance with relatively stable price movements. This is achieved through a quantitative selection process that assesses historical volatility and other relevant financial metrics. The funds objective is to offer investors a balanced exposure to small-cap equities while reducing the impact of market swings, thereby seeking to enhance risk-adjusted returns.
Investors in the Invesco S&P SmallCap Low Volatility ETF benefit from a targeted investment approach that seeks to smooth out the inherent volatility of the small-cap market. By concentrating on stocks with lower price volatility, the fund aims to provide a more stable and predictable investment outcome, making it a potentially attractive option for those seeking to capitalize on the growth potential of small-cap stocks while managing exposure to market fluctuations.
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