Invesco ETFs
Explore our lineup of ETFs and see how they can be cost-effective and tax-efficient for maximizing your investments and building long-term wealth.
Invesco ETFs
Seek to avoid unnecessary capital gains taxes
Help your clients reach their long-term goals by potentially limiting certain capital gains distributions with our tax-efficient ETFs.
Keep more of what is earned
Taxes on cap gains distributions can reduce earnings over time. In the hypothetical example above consisting of a $10,000 investment in US equity mutual funds over 10 years, paying taxes on distributions resulted in reduced returns of $3,800.1 Many ETFs pay little to no cap gains distributions which can help your clients keep more of what they earn.
Disclosures
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Source: Morningstar and Bloomberg using annual capital gains from 2014 to 2023 and an average of the 2014 to 2023 returns of the Morningstar US Fund Large Value, US Fund Large Growth and US Fund Large Blend categories.
Explore our tax-efficient ETFs
| Fund | Ticker | Description | Asset class | Learn more |
|---|---|---|---|---|
| Invesco S&P 500 Equal Weight ETF | RSP | Provides equal weight exposure to the largest 500 companies in the US as defined by S&P. | US Equity | Fact sheet Why consider this fund? |
| Invesco NASDAQ 100 ETF | QQQM | Provides exposure to the 100 largest domestic and international nonfinancial companies listed on Nasdaq. | US Equity | Fact sheet Why consider this fund? |
| Invesco Russell 1000® Dynamic Multifactor ETF | OMFL | Provides index-based exposure to US large-cap assets with a rotating factor equity strategy. | US Equity | Fact sheet Why consider this fund? |
| Invesco Senior Loan ETF | BKLN | Provides exposure to interest-paying, senior loans issued by banks or other lending institutions to corporations, partnerships or other entities. | US Equity | Fact sheet Why consider this fund? |
Invesco ETFs
Streamline tax season with Invesco ETFs
Help your clients keep more of what they earn by implementing these two tax strategies.
Transcript
Find the right ETFs for your clients' investing goals
No matter what your clients are looking to achieve, our ETFs can help you build customized portfolios with precision and confidence.
Footnotes
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1
Source: Morningstar and Bloomberg using annual capital gains from 2014 to 2023 and an average of the 2014 to 2023 returns of the Morningstar US Fund Large Value, US Fund Large Growth and US Fund Large Blend. The highest federal tax rates to short and long term capital gains were applied. A 23.8% tax rate was applied to long term capital gains distributions and 40.8% tax rate was applied to short term capital gains distributions. The tax rates included the 3.8% net investment income tax. The average short term and long term capital gains distribution percentages are calculated large cap funds and ETFs as a whole for each of the past 10 years. Morningstar large cap category performance is used to calculate a large cap portfolio's hypothetical performance over the past 10 years. At the end of each year the historical average cap gain distribution is taxed at the highest short and long term tax rates. This tax is removed from the hypothetical value of the portfolio and remaining cap gain is reinvested into the hypothetical portfolio. At the end of the 10 year analysis the value of a hypothetical portfolio that paid tax on capital gains is compared to the hypothetical balance if no capital gains taxes were paid. This difference is the opportunity cost of the capital gains distributions. Hypothetical example assumes an investor is conducting this investment in a taxable account.
Seek to avoid unnecessary capital gains taxes
Capital gains taxes can significantly erode your clients’ returns and limit their ability to build wealth. Compared with mutual funds, ETFs historically have made far fewer capital gains distributions, giving you potentially more control over your clients’ tax outcomes.
- 61% of US equity mutual funds paid a capital gains distribution in 2022, and the average size of the distribution (based on percentage of fund NAV) ranged from 2.5%–4.5% over the past decade.2
- 4% of US equity ETFs paid capital gains distributions in 2022, and the average size of the distribution (based on percentage of fund NAV) ranged from 0.10%–0.35% over the past decade.2
Our ETFs can be tax-efficient investments that provide access to index-based and actively managed strategies. Our tax-efficient ETF lineup includes:
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ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges.
Invesco does not offer tax advice. Please consult your tax adviser for information regarding your own personal tax situation.
Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
Although it is not Invesco's intention, there is no guarantee the funds will not have a capital gains distribution.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares.
