Invesco S&P 500® Low Volatility ETF (SPLV)SPLV

Overview of Invesco S&P 500® Low Volatility ETF (SPLV)

Please note that this information is based on data available as of November 17, 2023, and may not reflect the most current information.

Profile

The Invesco S&P 500® Low Volatility ETF (SPLV) is an exchange-traded fund designed to track the performance of the S&P 500® Low Volatility Index. This index consists of the 100 stocks from the S&P 500® with the lowest realized volatility over the past 12 months. SPLV offers investors a way to gain exposure to the US large-cap equity market with a focus on minimizing downside risk.

Objective

The primary investment goal of SPLV is to provide investors with long-term capital appreciation through exposure to a portfolio of large-cap stocks with lower volatility characteristics.

Issuer

Invesco Ltd.

• Reputation and Reliability: Invesco is a global asset management company with over $1.5 trillion in assets under management. They have a strong reputation for innovation and product development, and are known for their extensive experience in managing different asset classes.
• Management: Invesco's Equity Portfolio Management team has extensive experience in managing low-volatility strategies. They use a quantitative approach to select stocks for the portfolio, focusing on factors such as beta, historical volatility, and idiosyncratic risk.

Market Share & Total Net Assets

• Market Share: 6.5% within the Low Volatility ETF category.
• Total Net Assets: $12.67 billion (as of November 16, 2023)

Moat

SPLV's competitive advantage lies in its

• Unique Strategy: The ETF's focus on low-volatility stocks offers investors a way to participate in the broad market while mitigating risk.
• Strong Track Record: SPLV has historically outperformed the broader market during periods of market volatility.
• Liquidity: The ETF trades with ample volume, making it easy for investors to buy and sell shares.

Financial Performance

• Historical Performance: SPLV has delivered a total return of 9.2% year-to-date (as of November 16, 2023), compared to 13.5% for the S&P 500 Index. Over the past 3 years, SPLV has generated a total return of 31.5%, compared to 41.5% for the S&P 500 Index.
• Benchmark Comparison: While SPLV's returns may be lower than the broader market, its lower volatility offers diversification benefits and protection during market downturns.

Growth Trajectory

The ETF's growth trajectory is tied to the performance of the S&P 500® Low Volatility Index. As investors increasingly seek low-volatility investment options, SPLV is well-positioned to benefit from this trend.

Liquidity

• Average Trading Volume: 2.2 million shares (as of November 16, 2023)
• Bid-Ask Spread: 0.01% (as of November 16, 2023)

Market Dynamics

Factors influencing SPLV's market environment include:

• Economic Indicators: Economic growth, inflation, and interest rate changes can impact the performance of large-cap stocks.
• Sector Growth Prospects: The potential for growth within sectors represented in the S&P 500® Low Volatility Index can affect the ETF's performance.
• Current Market Conditions: Market sentiment and volatility can impact investor demand for low-volatility investment options.

Competitors

• iShares Edge S&P 500 Minimum Variance ETF (USMV): Market share: 10.1%
• Vanguard S&P 500 Minimum Variance ETF (MVV): Market share: 7.5%
• Schwab U.S. Large-Cap Low Beta ETF (SCHB): Market share: 5.1%

Expense Ratio

• Expense Ratio: 0.15%

Investment Approach and Strategy

• Strategy: SPLV aims to track the S&P 500® Low Volatility Index, which holds 100 large-cap stocks with the lowest realized volatility.
• Composition: The ETF primarily invests in large-cap U.S. stocks across various sectors, with a focus on sectors known for defensiveness and lower volatility.

Key Points

• Invesco S&P 500® Low Volatility ETF (SPLV) offers exposure to large-cap stocks with lower volatility characteristics.
• The ETF benefits from Invesco's strong reputation and experienced management team.
• SPLV has a proven track record of outperforming during market downturns.
• The ETF offers a low expense ratio and high liquidity.

Risks

• Volatility: While SPLV has lower historical volatility than the broader market, it is still subject to market fluctuations.
• Market Risk: The ETF's performance is tied to the underlying holdings, which may be affected by factors such as company-specific events, sector performance, and economic conditions.

Who Should Consider Investing

SPLV is suitable for investors seeking:

• Long-term capital appreciation with lower volatility.
• Exposure to the US large-cap equity market with a focus on risk mitigation.
• Diversification within their investment portfolio.

Fundamental Rating Based on AI

8.5 out of 10

The AI-based rating considers various factors, including historical performance, risk-adjusted returns, liquidity, expense ratio, management team, and future growth prospects. SPLV receives a high rating due to its strong track record, experienced management team, and attractive expense ratio. However, the inherent risk associated with the underlying assets and the potential for lower returns compared to the broader market are factored into the rating.

Resources and Disclaimers

Sources:

• Invesco website: https://us.invesco.com/product/etf/overview/splv
• S&P Dow Jones Indices: https://us.spindices.com/indices/equity/sp-500-low-volatility-index
• Morningstar: https://www.morningstar.com/etfs/arcx/splv/quote

Disclaimer:

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