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

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

Profile:

IDLV is an exchange-traded fund (ETF) that tracks the performance of the S&P International Developed Low Volatility Index. This index comprises large-cap stocks from developed markets outside the U.S. with low volatility characteristics.

Objective:

The primary objective of IDLV is to provide investors with exposure to international developed markets through a portfolio of low-volatility stocks. This strategy aims to generate consistent returns while minimizing risks associated with market fluctuations.

Issuer:

Invesco is a global investment management firm with over $1.5 trillion in assets under management. The firm has a strong reputation and a long track record of success in the ETF industry.

Market Share:

IDLV has a market share of approximately 0.5% in the international developed low volatility ETF space.

Total Net Assets:

As of October 27, 2023, IDLV has approximately $1.2 billion in total net assets.

Moat:

IDLV's competitive advantages include:

• Low-cost structure: The ETF has a low expense ratio of 0.25%, making it one of the most affordable options in the category.
• Diversified portfolio: The ETF holds over 100 stocks from various sectors and countries, providing broad exposure to the international developed market.
• Liquidity: IDLV trades with an average daily volume of over 100,000 shares, ensuring easy buying and selling.

Financial Performance:

IDLV has historically outperformed its benchmark index, the MSCI EAFE Index, over different time horizons. For example, since its inception in 2012, IDLV has delivered an annualized return of 7.5%, while the MSCI EAFE Index has returned 5.4%.

Growth Trajectory:

The demand for low-volatility investment strategies is expected to continue growing as investors seek to mitigate risks in their portfolios. This trend bodes well for IDLV's future growth prospects.

Liquidity:

IDLV has an average daily trading volume of over 100,000 shares, indicating good liquidity. The bid-ask spread is also tight, typically around 0.05%, leading to minimal trading costs.

Market Dynamics:

Factors affecting IDLV's market environment include:

• Global economic growth: A strong global economy can benefit international stocks, including those in IDLV's portfolio.
• Interest rate environment: Rising interest rates can impact the attractiveness of low-volatility stocks.
• Geopolitical risks: Political instability in certain regions can negatively affect the performance of international stocks.

Competitors:

Key competitors of IDLV include:

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

Expense Ratio:

IDLV has an expense ratio of 0.25%, which is considered low compared to other international developed low volatility ETFs.

Investment Approach and Strategy:

IDLV aims to track the S&P International Developed Low Volatility Index. The ETF invests in a portfolio of large-cap stocks from developed markets outside the U.S. that exhibit low volatility characteristics.

Key Points:

• Low-cost and diversified exposure to international developed low-volatility stocks.
• Strong historical performance and growth potential.
• Good liquidity and tight bid-ask spread.

Risks:

• Market risk: IDLV's performance is directly linked to the performance of the underlying international developed market.
• Volatility risk: Although IDLV targets low-volatility stocks, it is not immune to market fluctuations.
• Currency risk: The ETF is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing:

IDLV is suitable for investors seeking:

• Exposure to international developed markets with a focus on low volatility.
• Consistent returns with reduced risk compared to traditional market-capitalization-weighted international developed market ETFs.
• Long-term investment horizon.

Fundamental Rating Based on AI:

7.5/10

IDLV receives a good overall rating based on its strong financial performance, low expense ratio, and diversified portfolio. However, investors should be aware of the market and volatility risks associated with the ETF.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Invesco website
• ETF.com
• Morningstar

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.