QVMS Profile
The Invesco S&P SmallCap 600 QVM Multi-Factor ETF is strategically crafted to provide investors with targeted exposure to a subset of equities from the S&P SmallCap 600 Index, focusing on high-performance stocks based on multi-factor analysis. The fund allocates at least 90% of its total assets to securities that are part of the underlying index. This index, managed by S&P Dow Jones Indices LLC, is meticulously designed to reflect the performance of the top 90% of small-cap stocks, selected according to their quality, value, and momentum attributes.
The underlying index utilizes a multi-factor scoring system to filter the S&P SmallCap 600 Index, excluding those stocks that rank lowest in quality, value, and momentum scores. By focusing on the top 90% of stocks based on these multi-factor criteria, the index aims to identify equities with robust financial health, attractive valuations, and strong price momentum. This methodology ensures that the ETF's portfolio comprises only those small-cap stocks that exhibit superior characteristics in these critical areas.
The multi-factor approach employed by the index involves a thorough assessment of each stocks performance metrics, including profitability ratios, valuation multiples, and momentum indicators. This systematic evaluation helps in selecting securities that are expected to deliver better risk-adjusted returns compared to the broader small-cap universe. By emphasizing factors such as financial stability, valuation attractiveness, and recent price trends, the fund aims to achieve enhanced performance and reduced volatility.
The Invesco S&P SmallCap 600 QVM Multi-Factor ETF offers a focused investment approach within the small-cap segment, providing exposure to high-quality, well-valued, and momentum-driven stocks. This strategy aligns with investors seeking to capitalize on the growth potential of small-cap equities while adhering to a disciplined, factor-based investment process. The fund's methodology ensures a portfolio that reflects the strengths of top-performing stocks in the small-cap space, aiming for superior long-term results.
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