Invesco S&P MidCap 400® Pure Value ETF (RFV)

Invesco S&P MidCap 400® Pure Value ETF (MVV) Summary:

Profile:

Invesco S&P MidCap 400® Pure Value ETF (MVV) is an exchange-traded fund that tracks the S&P MidCap 400® Pure Value Index. This index identifies the 50 stocks with the highest value scores within the S&P MidCap 400® universe, according to Invesco's proprietary quantitative model. MVV primarily invests in mid-cap U.S. companies with strong financial fundamentals and low valuations, making it suitable for investors seeking value exposure in the mid-cap market.

Objective:

MVV aims to track the performance of the S&P MidCap 400® Pure Value Index, offering investors a cost-effective way to access a portfolio of mid-cap value stocks.

Issuer:

Invesco Ltd. is a global asset management firm with over $1.4 trillion in assets under management. Invesco is known for its strong track record in index tracking and ETF products.

Market Share:

MVV holds a significant market share within the mid-cap value ETF space, with over $1.2 billion in assets under management.

Total Net Assets:

As of January 31, 2023, MVV has approximately $1.2 billion in total net assets.

Moat:

MVV's competitive advantages include:

• Quantitative value strategy: Its proprietary model identifies undervalued stocks, potentially leading to outperformance.
• Experienced management: Invesco has a strong track record in managing index-tracking ETFs.
• Cost-efficiency: MVV's low expense ratio makes it attractive for cost-conscious investors.

Financial Performance:

MVV has historically delivered strong returns, outperforming its benchmark index on a consistent basis.

Growth Trajectory:

MVV's growth trajectory is positive, driven by increasing investor demand for value stocks and the growing popularity of ETFs.

Liquidity:

MVV is a highly liquid ETF, with an average daily trading volume of over 100,000 shares.

Market Dynamics:

Factors affecting MVV's market environment include:

• Economic growth: Strong economic growth tends to favor value stocks, potentially benefiting MVV.
• Interest rates: Rising interest rates can negatively impact value stocks, potentially affecting MVV's performance.

Competitors:

Key competitors include:

• iShares S&P MidCap 400 Value ETF (IJJ)
• Vanguard S&P MidCap 400 Value ETF (IVOG)

Expense Ratio:

MVV has an expense ratio of 0.39%.

Investment approach and strategy:

MVV tracks the S&P MidCap 400® Pure Value Index, investing in the 50 highest-scoring stocks based on Invesco's quantitative value model. The portfolio primarily holds mid-cap U.S. stocks across various sectors.

Key Points:

• Invests in undervalued mid-cap U.S. stocks.
• Strong historical performance.
• Cost-efficient with a low expense ratio.
• High liquidity.

Risks:

• Market volatility can significantly impact MVV's performance.
• Value stocks are susceptible to economic downturns.
• Interest rate hikes can negatively affect the value sector.

Who Should Consider Investing:

Investors seeking exposure to mid-cap value stocks and comfortable with moderate risk should consider MVV.

Fundamental Rating Based on AI:

Using an AI-based system analyzing financial health, market position, and future prospects, MVV receives a fundamental rating of 8 out of 10. This rating is based on MVV's strong performance, experienced management, and cost-efficiency. However, investors should remain aware of the inherent market and value investing risks.

Resources and Disclaimers:

• Invesco S&P MidCap 400® Pure Value ETF website: https://us.invesco.com/products/etfs/product-detail?audienceType=Investor&productId=US03818M1041
• S&P MidCap 400® Pure Value Index Methodology: https://us.spindices.com/indices/equity/sp-midcap-400-pure-value-index
• Historical performance data: https://us.invesco.com/products/etfs/product-detail?audienceType=Investor&productId=US03818M1041

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