Equal weight
An equal weight approach can help diversify portfolios by reducing concentration risk in market-capitalization-weighted indexes. Look into our equal weight funds below.
We are a leader in smart beta ETF strategies. Investors can combine the potential benefits of smart beta investing with targeted factor exposure. We have continued to innovate our smart beta ETF lineup to provide exposure to a range of single and multi-factor strategies.
Our smart beta ETFs can help investors reduce concentration risk and better diversify their equity exposures using an alternative weight approach.
An equal weight approach can help diversify portfolios by reducing concentration risk in market-capitalization-weighted indexes. Look into our equal weight funds below.
This approach utilizes fundamental measures, such as sales, cash flow, dividends, or book value, to help eliminate pricing errors and provide broad-based exposure. Look into our fundamental weight funds below.
Investors can access rewarded factors1, like value, size, quality, low volatility, dividend yield, and momentum, to generate potential excess returns. Each rewarded factor can be categorized into a factor type to help meet investment goals.
Value — Stocks trading at discount compared to intrinsic value based on measures, such as price-to-earnings ratio or sales.
Size — Stocks with smaller market capitalization.
Quality — Stocks with low leverage and high return on equity (ROE), cash flows, and profitability.
Low volatility — Stocks with lower-than-average volatility (standard deviation) or beta.
Dividend yield — Stocks with higher dividend payouts.
Momentum — Stocks with recent strong performance.
Fund | Ticker | Vehicle | Expense ratio | How to invest |
---|---|---|---|---|
Invesco S&P 500 Equal Weight ETF | RSP | ETF | 0.20% | Invest in RSP Fact sheet |
Invesco S&P 500 Pure Value ETF | RPV | ETF | 0.35% | Invest in RPV Fact sheet |
Invesco S&P 500 Low Volatility ETF | SPLV | ETF | 0.25% | Invest in SPLV Fact sheet |
Invesco S&P 500 High Dividend Low Volatility ETF | SPHD | ETF | 0.30% | Invest in SPHD Fact sheet |
Invesco S&P 500 Quality ETF | SPHQ | ETF | 0.19% | Invest in SPHQ Fact sheet |
Invesco S&P 500 Momentum ETF | SPMO | ETF | 0.13% | Invest in SPMO Fact sheet |
Invesco Russell 1000 Dynamic Multifactor ETF | OMFL | ETF | 0.29% | Invest in OMFL Fact sheet |
Invesco S&P 500 QVM Multi-factor ETF | QVML | ETF | 0.11% | Invest in QVML Fact sheet |
Invesco S&P 500 GARP ETF | SPGP | ETF | 0.33% | Invest in SPGP Fact sheet |
It’s a portfolio weighting approach that provides an alternative to weighting by market cap — stock price multiplied by outstanding shares. Some examples include equal weight and revenue weight which takes an underlying basket of stocks and weights by company net revenue.
Factors investing is a subset of smart beta investing. Factor strategies select a group of stocks with similar characteristics and weight the stocks by the factor. Examples of factors: Value, size, quality, low volatility, momentum, and dividend yield.
Smart beta investing uses a weighting approach that can create a differentiated risk/return profile compared to market cap weighting. Factor investing groups stocks with similar quantifiable characteristics.
Our smart beta ETF line-up attempts to offer concentrated factor exposure through a methodical stock selection process with either unconstrained or wide-sector constraints. We offer a variety of equal weight and revenue-weighted smart beta ETFs.
As we continue to see a few large names dominate the weight of traditional market-cap indexes, a smart beta approach may offer investors a transparent way to reduce concentration risk and better diversify their equity exposures based on an alternative weighting approach. Factor investing helps investors access risk management strategies and can help them meet their financial objectives.
Rewarded factors have a credible reason to offer a persistent premium based on sources of systemic risk, investor behavioral biases, and structural limitations. They have been vetted in academic journals and have the potential for excess returns.
Explore our lineup of ETFs and see how they can be cost-effective, tax-efficient tools for maximizing investments and building long-term wealth.
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Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index-based methodology that seeks to outperform a benchmark or reduce portfolio risk, both in active or passive vehicles. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
Most ETFs disclose their holdings daily.
Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs
Certain funds and portfolios, particularly the Invesco ETFs, in and of themselves do not qualify as diversified investment strategies.