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Invesco S&P MidCap Low Volatility ETF
Explore the benefits of balancing return potential and risk in large-cap stocks.
The Invesco S&P 500 Low Volatility ETF is designed for investors seeking exposure to US large-cap stocks with low volatility for both potential upside participation and risk mitigation.
Our low volatility ETFs can potentially minimize the drawdown investors experience. The chart depicts the more loss you experience on an investment, the greater gain is needed to bring the investment back to whole.
Get timely answers to important questions regarding this product.
In general, low volatility ETFs favor stocks with low historical price variance typically measured by standard deviation. Individual low volatility ETFs may differ in what market segments they track and how they select and weight individual stocks.
SPLV is based on the S&P 500® Low Volatility Index, which measures performance of the 100 least volatile stocks in the S&P 500 Index.
SPLV’s underlying index, the S&P 500® Low Volatility Index, is rebalanced and reconstituted quarterly in February, May, August, and November.
SPLV can be used to potentially provide a smoother investment experience by dampening market volatility. In particular, SPLV may appeal to investors seeking equity exposure but are concerned about deep drawdowns.
SPLV provides access to the low volatility factor without imposing sector constraints. SPLV’s underlying index rotates — through quarterly scheduled rebalancing — out of the most volatile sectors to provide risk mitigation potential.
There is no assurance that such ETFs will provide low volatility.
The Invesco S&P 500® Low Volatility ETF seeks to track the investment results (before fees and expenses) of the S&P 500® Low Volatility Index.
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The S&P 500® Index is a market-capitalization-weighted index (largest companies based on market capitalization make up largest portion of the index) consisting of the 500 largest, most prominent, publicly-traded companies in the US as determined by S&P. The S&P 500® Low Volatility Index measures performance of the 100 stocks with the lowest realized volatility over the past 12 months from the S&P 500®. The index benchmarks low volatility or low variance strategies for the US stock market. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights. An investment cannot be made directly into an index.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular sector, such as utilities, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Standard deviation measures a fund’s range of total returns and identifies the spread of a fund’s short-term fluctuations.
The Fund may become “non-diversified,” as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status under such circumstances.
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