QVML Profile
The Invesco S&P 500 QVM Multi-Factor ETF is designed to provide investors with exposure to a refined selection of equities from the S&P 500 Index, focusing on those with superior multi-factor scores. Under normal market conditions, the fund allocates at least 90% of its total assets to securities that are constituents of the underlying index. This index, curated and managed by S&P Dow Jones Indices (S&P DJI), employs a rigorous methodology to filter and select stocks based on quality, value, and momentum factors.
The underlying index targets the top 90% of stocks within the S&P 500 Index, excluding those that rank lowest in terms of multi-factor scores. This approach ensures that the ETF's portfolio comprises only those securities that exhibit the strongest attributes across the selected factors of quality, value, and momentum. By focusing on high-ranking stocks according to these criteria, the fund aims to enhance performance potential and risk-adjusted returns compared to the broader S&P 500 Index.
The multi-factor scoring system utilized by the index incorporates a comprehensive assessment of each securitys financial health, valuation metrics, and momentum indicators. This systematic approach helps in identifying equities with favorable characteristics that are expected to deliver superior long-term performance. The indexs emphasis on factors such as profitability, valuation, and price momentum reflects a disciplined investment strategy designed to capture alpha and mitigate potential risks associated with lower-scoring stocks.
The Invesco S&P 500 QVM Multi-Factor ETF offers a targeted investment strategy within the broad S&P 500 universe, aiming to provide enhanced returns by focusing on high-quality, attractively valued, and momentum-driven stocks. By concentrating on these factors, the fund seeks to deliver a diversified yet focused portfolio that aligns with the investment goals of those looking for robust performance from leading U.S. companies while maintaining a disciplined approach to factor investing.
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