XSMO Profile
The Invesco S&P SmallCap Momentum ETF seeks to replicate the performance of the S&P SmallCap 600 Momentum Index. This index is designed to track the performance of small-cap stocks within the S&P SmallCap 600 Index that exhibit the highest momentum characteristics. Momentum is identified based on a combination of price performance and other quantitative factors, aiming to capture stocks with strong recent performance trends.
The fund generally invests at least 90% of its total assets in the securities that comprise the underlying index. The S&P SmallCap 600 Momentum Index selects its constituents from the broader S&P SmallCap 600 Index based on momentum metrics, focusing on those with the strongest relative price performance. This approach targets companies that have shown robust price gains and strong upward trends, reflecting a strategic investment in high-performing small-cap equities.
The index provider, following strict guidelines and procedures, compiles, maintains, and calculates the S&P SmallCap 600 Momentum Index. This involves a rigorous selection process to ensure that only those small-cap stocks with the highest momentum characteristics are included. By adhering to this methodology, the ETF aims to deliver returns that are reflective of the underlying index's performance, emphasizing stocks with strong and sustained momentum.
Invescos ETF provides investors with targeted exposure to small-cap stocks that are demonstrating significant momentum, offering the potential for higher returns associated with strong performance trends. The fund's focus on momentum-driven stocks within the small-cap sector aligns with strategies seeking to capitalize on market trends and stock performance dynamics. As a result, the ETF is suited for investors looking to invest in high-growth potential small-cap equities driven by recent performance trends.
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