XMLV Profile
The Invesco S&P MidCap Low Volatility ETF is designed to offer investors exposure to a subset of the S&P MidCap 400 Index, focusing on securities with the lowest realized volatility over the previous 12 months. The fund typically invests at least 90% of its total assets in the securities that constitute the underlying index. By targeting mid-cap companies with lower volatility, the ETF aims to provide a smoother investment experience with potentially reduced risk compared to other mid-cap stocks.
The underlying index, curated and managed by S&P Dow Jones Indices LLC, identifies approximately 80 securities from the S&P MidCap 400 Index that exhibit the lowest volatility over the past year. This index is meticulously compiled, maintained, and calculated to ensure it accurately represents the performance of these lower-volatility mid-cap stocks. The ETF's focus on these specific securities seeks to balance growth potential with stability.
This ETF's investment strategy is anchored in its adherence to the low-volatility subset of the S&P MidCap 400 Index. By concentrating on mid-cap companies with historically lower volatility, the fund aims to deliver returns that reflect a more stable investment profile. This approach is particularly appealing to investors seeking to mitigate the fluctuations often associated with mid-cap equities while still gaining exposure to their growth opportunities.
The Invesco S&P MidCap Low Volatility ETF provides a strategic option for investors looking to gain exposure to mid-cap stocks with reduced volatility. The fund's focus on low-volatility securities within the mid-cap segment of the market is intended to offer a more predictable performance profile, catering to those who seek to balance potential returns with a lower risk of significant price swings.
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