The Invesco S&P SmallCap Value with Momentum ETF (XSVM) is managed by Invesco, a leading global asset management firm. Invesco has a strong track record in providing a wide range of investment solutions to clients around the world. XSVM seeks to replicate the performance of the S&P SmallCap 600® High Momentum Value Index, which is maintained and calculated by S&P Dow Jones Indices LLC. This index is designed to identify 120 stocks within the S&P SmallCap 600® Index that exhibit both high value and momentum characteristics, offering investors exposure to promising small-cap stocks with attractive fundamentals and positive price momentum. Invesco's XSVM ETF provides a convenient and diversified way for investors to access this unique segment of the market.
While XSVM (the Invesco S&P SmallCap Value with Momentum ETF) primarily focuses on small-cap value and momentum stocks, its dividend distribution follows the performance of the underlying S&P SmallCap 600® Value and Momentum Index. Dividends from this ETF are typically paid out in accordance with the dividend policies and performance of the constituent companies within the index. The index is designed to measure the performance of 120 stocks in the S&P SmallCap 600® Index that exhibit both value and momentum characteristics. Investors in XSVM may benefit from both potential capital appreciation and dividend returns, depending on the performance of the index constituents.
The Invesco S&P SmallCap Value with Momentum ETF, with the ticker symbol XSVM, aims to closely track the performance of the S&P SmallCap 600® Index with a focus on stocks exhibiting both value and momentum characteristics. The ETF invests at least 90% of its total assets in securities that make up the Underlying Index. The Index Provider, S&P Dow Jones Indices LLC, compiles and calculates the Underlying Index, which comprises 120 stocks from the S&P SmallCap 600® Index with high value and momentum scores. Stocks are selected based on value factors like book value-to-price ratio, earnings-to-price ratio, and sales-to-price ratio, and then ranked by momentum score, considering price movements over the last 12 months. XSVM uses a full replication methodology, meaning it seeks to invest in all constituent securities in proportion to their weightings in the Underlying Index, providing investors with exposure to a diversified portfolio of small-cap stocks exhibiting both value and momentum characteristics. The ETF's concentration policy ensures that it does not excessively concentrate its investments in any one industry or group of industries, aligning with the diversification requirements under the Investment Company Act of 1940.
The correlation aspect of the Invesco S&P SmallCap Value with Momentum ETF (XSVM) is essential for understanding its behavior in relation to its underlying index, the S&P SmallCap 600® Index. XSVM generally invests at least 90% of its assets in securities that comprise this index, which focuses on 120 stocks with relatively high value and momentum scores. Given this investment strategy, XSVM is expected to have a strong correlation with the performance of small-cap value and momentum stocks within the S&P SmallCap 600® Index. Investors often use XSVM's correlation data to assess its effectiveness in tracking this specific market segment and for potential diversification and risk management strategies.
The Invesco S&P SmallCap Value with Momentum ETF (XSVM) focuses on the small-cap value and momentum sectors. This ETF aims to replicate the performance of 120 stocks within the S&P SmallCap 600® Index that have relatively high value and momentum scores. It specifically targets undervalued companies with strong momentum, providing investors with exposure to potential growth opportunities in the small-cap market. While the fund seeks to diversify its holdings, it may concentrate its investments in specific industries if the Underlying Index reflects such concentration, but it generally aims to avoid over-concentration in any one industry or group of industries.
The exposure characteristic of the Invesco S&P SmallCap Value with Momentum ETF (XSVM) is designed to capture the performance of 120 stocks within the S&P SmallCap 600® Index that exhibit both high value and momentum scores. This ETF provides investors with exposure to U.S. small-cap companies that are considered undervalued by traditional metrics and have displayed strong recent performance relative to their peers. By employing a full replication methodology, XSVM aims to closely track the performance of these selected stocks, offering a unique investment opportunity for those seeking exposure to small-cap value and momentum strategies.
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