The DEF issuer, represented by the INVESCO ETF, adheres to a distinctive approach to defensive equity portfolios, distinct from the conventional low beta stock strategy. Instead, the Fund invests at least 80% of its assets in the securities of the Underlying Index, which is meticulously curated by Invesco Indexing LLC, a subsidiary of the Fund's investment adviser and distributor. This index is composed of approximately 100 equal-weighted securities selected from the S&P 500 based on stringent criteria including the probability of delivering necessary revenue growth, beta, and down market volatility. Specifically, securities ranking in the top 80% for revenue growth probability are considered, followed by an assessment of beta and down market volatility, resulting in a portfolio with minimized industry exposure divergence from the S&P 500. As of August 31, 2021, the Underlying Index consisted of 100 securities, reflecting market capitalizations ranging from $10.6 billion to $455.9 billion. The Fund employs a full replication strategy to track the Underlying Index, meaning it invests in all securities in proportion to their weightings in the Index. Furthermore, the Fund's concentration policy ensures that investments in any single industry or group of industries do not exceed 25% of its net assets unless the Underlying Index reflects such a concentration.
DEF Dividend, represented by the INVESCO ETF, adopts a strategic investment approach aimed at delivering consistent dividend yields. With a focus on securities from the Underlying Index, compiled and maintained by Invesco Indexing LLC, the Fund seeks to invest at least 80% of its assets in a carefully curated selection of securities. These securities are chosen based on stringent criteria including their probability of delivering requisite revenue growth, beta, and down market volatility. By employing a rules-based quantitative methodology, DEF Dividend ensures that its portfolio comprises approximately 100 equal-weighted securities selected from the S&P 500, with a strong emphasis on dividend-paying potential. As of August 31, 2021, the Underlying Index boasted a diverse array of 100 securities with market capitalizations ranging from $10.6 billion to $455.9 billion, reflecting DEF Dividend's commitment to maintaining a balanced and robust portfolio. The Fund's investment strategy prioritizes full replication of the Underlying Index, ensuring that it tracks its performance accurately while providing investors with the opportunity to benefit from consistent dividend payouts.
DEF Tracking, represented by the INVESCO ETF, employs a meticulous investment strategy focused on closely mirroring the performance of its Underlying Index. Invesco Indexing LLC, affiliated with the Fund's investment advisor and distributor, meticulously constructs and maintains this index. DEF Tracking invests at least 80% of its assets in securities that constitute the Underlying Index, comprised of around 100 equal-weighted securities meticulously selected from the S&P 500. These securities undergo a rigorous evaluation process, considering factors such as their probability of delivering required revenue growth, beta, and down market volatility. By utilizing a rules-based quantitative methodology, DEF Tracking ensures that its portfolio accurately reflects the performance of the broader market. As of August 31, 2021, the Underlying Index comprised 100 securities with varying market capitalizations, showcasing the Fund's commitment to precise tracking while providing investors with exposure to a diverse range of assets. DEF Tracking's dedication to full replication of the Underlying Index ensures that investors can effectively capture the market's performance while minimizing tracking errors.
DEF Correlation, embodied by the INVESCO ETF, adopts a sophisticated investment strategy aimed at closely correlating with its Underlying Index. Invesco Indexing LLC, in affiliation with the Fund's investment advisor and distributor, meticulously constructs and manages this index. DEF Correlation allocates a minimum of 80% of its assets to securities within the Underlying Index, which comprises approximately 100 equally-weighted securities meticulously selected from the S&P 500. These securities undergo a stringent evaluation process, considering metrics such as their probability of delivering necessary revenue growth, beta, and down market volatility. Through a rules-based quantitative approach, DEF Correlation ensures that its portfolio closely mirrors the performance of the broader market. As of August 31, 2021, the Underlying Index consisted of 100 securities with varying market capitalizations, showcasing the Fund's dedication to precise correlation while providing investors with exposure to a diversified range of assets. DEF Correlation's commitment to closely correlating with the Underlying Index enhances investors' ability to effectively capture market movements and manage portfolio risk.
DEF Sector, as represented by the INVESCO ETF, implements a strategic investment approach with a focus on sector-specific exposure. The Fund's investment strategy primarily involves allocating at least 80% of its total assets to securities within its Underlying Index, meticulously curated and maintained by Invesco Indexing LLC. This index comprises approximately 100 equally-weighted securities carefully selected from the S&P 500. DEF Sector's investment decisions are guided by a rules-based quantitative methodology, emphasizing factors such as the probability of delivering necessary revenue growth, beta, and down market volatility. Through this approach, DEF Sector ensures that its portfolio reflects the sectoral composition of the broader market while mitigating undue concentration risks. As of August 31, 2021, the Underlying Index included 100 securities spanning various sectors, offering investors diversified exposure to different segments of the economy. DEF Sector's commitment to sector-specific allocation enables investors to tailor their portfolios according to their sectoral preferences while benefiting from the Fund's systematic investment approach.
DEF Exposure, as represented by the INVESCO ETF, adopts a nuanced investment strategy focused on providing targeted exposure to specific market factors. The Fund allocates a minimum of 80% of its assets to securities within its Underlying Index, meticulously curated and maintained by Invesco Indexing LLC. This index comprises around 100 equally-weighted securities selected from the S&P 500, with each security chosen based on rigorous criteria such as its probability of delivering necessary revenue growth, beta, and down market volatility. DEF Exposure employs a rules-based quantitative methodology to ensure that its portfolio reflects the desired exposure to various market factors while minimizing risk. As of August 31, 2021, the Underlying Index included 100 securities spanning different market factors, providing investors with a diversified exposure that aligns with their investment objectives. DEF Exposure's commitment to targeted exposure allows investors to tailor their portfolios to specific market factors, thereby potentially enhancing returns and managing risk more effectively.
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