Your destination for index portfolio management to help you meet your investment goals.
across 475+ index-based solutions
As of September 30, 2024
in global equity assets across 335 index-based solutions.
dedicated professionals
Utilizing a variety of replication methodologies, Invesco currently manages $760 billion across 475+ index-based solutions spanning traditional and alternative asset classes, regions, sectors, and factors. We provide our clients with a wide array of access points, including institutional and retail pooled structures, insurance wrappers, separately managed accounts and exchange traded, and many more.
A collection of insights delivered quarterly featuring commentary on the current macro regime, inflation and other geopolitical topics to help indexing investors understand the implications of the market environment.
Learn how institutional investors are meeting their desired investment outcomes with index-based solutions.
Explore similarities and differences between the S&P 500® Index and the Russell 3000® Index.
Invesco takes an active approach to its passive investments, ensuring our clients have a solid understanding of their benchmark properties, behavior, and drivers of return. In a recent client engagement, we provided a deeper look into two well-known US equity indexes, the Russell 3000 and the S&P 500. While both share a market-cap-weighting methodology and similar long-term performance, differences exist, making the case that investors can benefit from evaluating their index exposure.
Now let's dive into the top similarities and differences between the two indexes. Historically, the performance of both indexes is barely distinguishable. The mid and small-cap securities in the Russell 3000 do not explain much of the index's performance, despite its being an all-cap index. Although both indexes rely on a market-cap-weighting approach, the S&P 500 deploys a subjective committee for security inclusion, whereas the Russell 3000 utilizes a more objective rules-based methodology.
Despite the inclusion of both small and mid caps in the Russell 3000, both indexes have a similar market-cap composition, which is large cap, given the weighting methodology. For investors who value the importance of small-cap securities as a driver of return or diversification, a dedicated small cap mandate may be additive.
Relative to the Russell 3000, the S&P 500 is more concentrated, given its lower number of index constituents. While both the Russell 3000 and the S&P 500 have a comparable index construction methodology and share similarities across the risk and return spectrum, the weighting mechanisms of stocks included in each index may position clients to be overly exposed to large-cap companies. Investors who are looking to diversify their market exposure should seek a more balanced mix of large, mid, and small-cap companies through other index exposures.
Our team can support your organization's efforts to find diversifying, return-enhancing, or risk-reducing strategies to complement your existing passive US large-cap exposure. For more information, please visit invesco.com/institutional-indexing, or speak with your Invesco representative.
Learn how Invesco worked with a large US bank to successfully build a customized values-indexing portfolio.
Paisley Nardini: Hi, I'm Paisley Nardini, Strategist for the client solutions team here at Invesco. In this role, I support both our clients and consultants on all index-related inquiries. In this new era of indexation, we've come to discover that it is no longer a one-size-fits all market. Client portfolios are seeking enhanced ways to achieve their stated objectives, whether it be return enhancement, diversification, or risk reduction. Index exposure can play an active role in all of these objectives.
A theme which is garnering increased focus within indexing is ESG. Many of the ESG discussions we are having can be attributed to our clients not resonating with what is available to them off the shelf. Due to Invesco's scale, ESG-dedicated resources, as well as the ability to develop custom indexes, we can offer solutions to help resolve these outstanding concerns.
I'd like to share some highlights of a recent engagement where Invesco delivered on a client's objective of being able to offer a custom suite of ESG-focused portfolios. These portfolios showcase the unique beliefs and values of our client, something that they were not able to find in the marketplace today. The client is a union-owned bank in the US, who partnered with Invesco to create and implement four indexes spanning [core] ESG as well as several satellite strategies more narrowly focused on environmental and social issues. The solutions team at Invesco partnered with our resident ESG experts to help define the client's desired exposures, while also taking into consideration constraints. What this meant for the client was high-touch service and high level of customization, so that their unique beliefs are being addressed.
One of the more nuanced strategies that was created in this process was a portfolio benchmarked to the Invesco Global Climate Alignment Index. This index provides access to leaders in carbon disclosure and reporting, alongside those companies innovating within the carbon solution space. The creation of this index relied on ESG data inputs from leading providers and incorporated the client's desired constraints. We worked hand in hand with our client in every step of the creation process, ensuring that Invesco is doing the heavy lifting to develop, create, iterate, and implement to the client's desired outcome.
Our mission on the solutions team at Invesco is to help bring our client's investment ideas to life. We would welcome the opportunity to help your organization achieve more efficient, higher level of customization and a deeper level of engagement as it relates to index mandates. Thank you.
Can remarkable US industrial revenues continue?
Historical increases in US industrial rents have out-performed past trends. Can that run continue? We look at e-commerce and interest rates for an answer.
Alternative Opportunities for Insurers
The Invesco Solutions team shares its views on a range of private market asset classes.
Alternative opportunities: What’s the outlook update for private credit, private equity and real assets?
Alternative Opportunities is a quarterly report from Invesco Solutions. Each edition looks at the asset outlook for private credit, private equity, real estate, and real assets.
Why complement direct lending with real estate debt?
Private credit, including real estate debt and direct lending, offers diversification and low volatility, making it an attractive option for investors seeking optimized portfolios.
Yields have remained attractive and may maintain positive relative value
Invesco’s bank loans, direct lending and distressed credit teams share their views as the third quarter of 2024 wraps up.
When you’re ready for a partner, not just a provider, we can connect you with a team focused on your investment challenges and opportunities.
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The Invesco Solutions (IS) team is part of Invesco Advisers, Inc. (IAI), an investment adviser that provides investment advisory services and does not sell securities.
Invesco Capital Management LLC (ICM) is also an investment adviser. In addition, ICM provides portfolio management and certain portfolio operations support (sub-advisory services) to Invesco affiliates including Invesco Advisers, Inc.
Invesco Indexing LLC is an affiliated index provider. It is a separate entity, not an investment adviser or fiduciary, and makes no representation regarding the advisability of investing in any security or strategy. Invesco Indexing LLC is a self-indexing unit, has its own governance structure and is separate from Invesco’s broader Institutional Indexing effort. Indexes offered by Invesco Indexing LLC are unmanaged and it is not possible to invest directly in an index. Exposure to an asset class or trading strategy represented by an index is only available through investable instruments (if any) based on that index. Invesco Indexing LLC does not issue, sponsor, endorse, market, offer, review or otherwise express any opinion regarding any fund, derivative or other security, financial product or trading strategy that is based on, linked to or seeks to track the performance of any Invesco Indexing LLC index.
Each of these entities is an indirect, wholly owned subsidiary of Invesco Ltd. Please contact your Invesco representative for additional information.
This link takes you to a site not affiliated with Invesco. The site is for informational purposes only. Invesco does not guarantee nor take any responsibility for any of the content.
