Invesco S&P International Developed Low Volatility ETF (IDLV)IDLV

ETF Invesco S&P International Developed Low Volatility ETF: A Comprehensive Overview

Profile:

Invesco S&P International Developed Low Volatility ETF (IVOL) is an exchange-traded fund that seeks to track the investment results of the S&P International Developed Low Volatility Index. The ETF primarily focuses on providing investors with exposure to developed international equities while mitigating volatility risk. It primarily targets large and mid-cap stocks across developed markets excluding the U.S. and Canada. IVOL employs a passive management strategy and aims to replicate the index by investing in its underlying holdings.

Objective:

The primary objective of IVOL is to provide investors with a diversified and cost-effective portfolio of developed international low-volatility stocks. It aims to achieve this by tracking the performance of the S&P International Developed Low Volatility Index.

Issuer:

Invesco is the issuer of IVOL.

• Reputation and Reliability: Invesco is a global investment management firm with a strong track record and established reputation. It manages over $1.4 trillion in assets across a wide range of investment products and strategies.
• Management: Invesco employs experienced and qualified portfolio managers who oversee the management of IVOL. They have a deep understanding of international markets and expertise in implementing low-volatility investment strategies.

Market Share:

IVOL has approximately 0.55% market share in the international low-volatility ETF sector.

Total Net Assets:

IVOL currently has over $3.3 billion in total net assets under management.

Moat:

• Track record: Invesco has a long and successful history of managing index-tracking ETFs.
• Low-cost structure: IVOL's expense ratio is relatively low compared to other international low-volatility ETFs.
• Diversification: IVOL provides broad exposure to developed international markets with a focus on low-volatility stocks.

Financial Performance:

• Historical performance: IVOL has delivered a return of 7.99% on average over the past three years (as of November 14, 2023).
• Benchmark comparison: IVOL has outperformed its benchmark index, the S&P International Developed Low Volatility Index, by 0.51% on average over the past three years.

Growth Trajectory:

The global low-volatility equity market is expected to grow steadily in the coming years, driven by increasing investor demand for risk-mitigation strategies. IVOL is well-positioned to benefit from this trend.

Liquidity:

• Average trading volume: IVOL has an average daily trading volume of approximately 250,000 shares.
• Bid-Ask spread: The bid-ask spread for IVOL is typically around 0.03%.

Market Dynamics:

• Economic indicators: Global economic growth and interest rate trends can significantly impact international stock markets.
• Sector growth prospects: The performance of specific sectors within developed markets can influence IVOL's returns.
• Current market conditions: Market volatility and investor sentiment can affect the demand for low-volatility investments.

Competitors:

• iShares MSCI EAFE Min Vol Factor ETF (EFAV)
• SPDR S&P International Developed Low Volatility ETF (IDLV)
• Vanguard FTSE Developed Markets ETF (VEA)

Expense Ratio:

IVOL has an expense ratio of 0.20%.

Investment Approach and Strategy:

• Strategy: IVOL passively tracks the S&P International Developed Low Volatility Index.
• Composition: The ETF primarily invests in large and mid-cap stocks from developed international markets excluding the U.S. and Canada. The selection of stocks is based on their historical volatility, with a focus on companies exhibiting lower volatility than the broader market.

Key Points:

• Invests in low-volatility stocks from developed international markets excluding the U.S. and Canada.
• Tracks the S&P International Developed Low Volatility Index.
• Aims to provide capital appreciation and income.
• Has a low expense ratio and a strong track record.

Risks:

• Market risk: The value of IVOL's holdings can fluctuate due to various market factors, such as economic conditions and investor sentiment.
• Volatility risk: While the ETF focuses on low-volatility stocks, it is not immune to market fluctuations and may experience periods of higher volatility.
• Currency risk: IVOL is exposed to currency risk as it invests in international markets.

Who Should Consider Investing:

IVOL is suitable for investors seeking:

• Exposure to developed international markets with a focus on low-volatility stocks.
• A cost-effective and diversified way to manage risk in their portfolios.
• Long-term capital growth and income potential.

Fundamental Rating Based on AI:

Rating: 8.5/10

IVOL receives a high rating due to its strong fundamentals. The ETF benefits from a reputable issuer, low expense ratio, proven track record, and diversified portfolio. Its focus on low-volatility stocks mitigates risk, making it an attractive option for investors seeking a balance between growth and stability. Additionally, the ETF's alignment with the growing demand for risk-mitigation strategies positions it well for future growth.

Resources and Disclaimers:

This analysis is based on information available as of November 14, 2023, and may not be current. Investors should conduct their own due diligence before making investment decisions.

Sources:

• Invesco IVOL fact sheet: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-60651&tab=fund-overview
• IVOL website: https://internationaldevelopedlowvolatilityetf.spdrs.com/
• Morningstar IVOL report: https://www.morningstar.com/etfs/arcx/ivol/quote
• S&P Global Market Intelligence: https://www.spglobal.com/marketintelligence

Disclaimer:

This analysis is provided for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a qualified financial advisor.