XSVM Profile
The Invesco S&P SmallCap Value with Momentum ETF seeks to deliver targeted exposure to small-cap stocks with favorable value and momentum characteristics. The fund aims to invest at least 90% of its total assets in securities that align with the underlying index, ensuring a high degree of correlation between the funds performance and the index it tracks. This investment strategy is designed to focus on small-cap companies within the S&P SmallCap 600 Index that exhibit strong value and momentum traits.
The underlying index, compiled, maintained, and calculated by the index provider, specifically targets approximately 120 stocks from the S&P SmallCap 600 Index. This index is meticulously constructed to capture stocks that not only demonstrate robust value characteristics but also show momentum, defined as recent performance trends that suggest future growth potential. The index integrates these factors to identify companies that are undervalued yet have shown strong recent performance, aiming to enhance potential returns.
In its methodology, the index provider applies a systematic approach to select stocks based on value metrics such as price-to-earnings ratios, price-to-book ratios, and other valuation indicators. Concurrently, the momentum factor is assessed through measures like recent price performance and trading volume trends. This dual-focus approach ensures that the index reflects companies that are both attractively valued and exhibiting positive performance trends.
Investors in the Invesco S&P SmallCap Value with Momentum ETF gain access to a portfolio of small-cap stocks that are strategically chosen for their value and momentum attributes. The funds approach is designed to capture the growth potential of smaller companies while mitigating risk through a focus on value and momentum, providing a nuanced investment strategy that seeks to outperform traditional small-cap indices over time.
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