 The
Invesco Defensive Equity ETF (DEF) is an exchange-traded fund that
seeks to track the performance of the Invesco Defensive Equity Index.
The index is designed to provide exposure to US companies that exhibit
lower volatility characteristics relative to the broader US equity
market.
The fund seeks to achieve its investment objective by
investing at least 90% of its total assets in the securities that make
up the index. The index is made up of 100 US large-cap stocks selected
based on their lower volatility characteristics, including beta,
market capitalization, and sector volatility.
As of March 2023,
the fund has total net assets of around $1.6 billion and an expense
ratio of 0.55%. The fund's top holdings include Johnson & Johnson,
Procter & Gamble, PepsiCo, and Coca-Cola.
The Invesco Defensive
Equity ETF may appeal to investors looking for exposure to US
large-cap stocks with lower volatility characteristics, potentially
providing downside protection during market downturns. However, it is
important to note that the fund may not provide as much upside
potential as higher-risk funds, and its focus on defensive stocks may
result in underperformance during periods of market growth.
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