Invesco S&P 500 Value with Momentum ETF (SPVM)SPVM

Invesco S&P 500 Value with Momentum ETF (SPVM)

Profile:

Invesco S&P 500 Value with Momentum ETF (SPVM) is an exchange-traded fund that tracks the S&P 500 Value with Momentum Index. This index focuses on large-cap US stocks with a blend of value and momentum characteristics. SPVM invests in approximately 125 stocks across various sectors, with a tilt towards value sectors like financials, industrials, and energy.

Objective:

The primary investment goal of SPVM is to provide long-term capital appreciation by investing in a portfolio of S&P 500 stocks exhibiting both value and momentum characteristics.

Issuer:

Invesco is the issuer of SPVM.

Reputation and Reliability:

Invesco is a global investment management firm with over $1.5 trillion in assets under management. It has a strong reputation for providing high-quality investment products and services.

Management:

The portfolio management team at Invesco has extensive experience in managing index-based and actively managed equity strategies.

Market Share:

SPVM has a market share of approximately 0.5% within the large-cap value ETF category.

Total Net Assets:

As of November 2023, SPVM has approximately $1.5 billion in total net assets.

Moat:

SPVM's competitive advantage lies in its unique investment strategy that combines value and momentum factors. This approach aims to generate superior returns compared to traditional value or momentum-focused strategies.

Financial Performance:

Since its inception in 2015, SPVM has delivered an annualized return of approximately 10%, outperforming both the S&P 500 and the S&P 500 Value Index.

Benchmark Comparison:

SPVM has consistently outperformed both the S&P 500 and the S&P 500 Value Index over different timeframes.

Growth Trajectory:

The ETF has experienced steady growth in assets under management and is expected to continue growing as investors seek alternative investment strategies.

Liquidity:

SPVM has an average daily trading volume of over 500,000 shares, indicating good liquidity.

Bid-Ask Spread:

The bid-ask spread for SPVM is typically around 0.05%, which is considered tight and indicates low trading costs.

Market Dynamics:

The performance of SPVM is influenced by factors such as economic growth, interest rates, and sector performance.

Competitors:

Key competitors include iShares S&P 500 Value ETF (IVE) and Vanguard Value ETF (VTV).

Expense Ratio:

SPVM has an expense ratio of 0.35%.

Investment Approach and Strategy:

SPVM passively tracks the S&P 500 Value with Momentum Index. The ETF invests in a diversified portfolio of large-cap US stocks selected based on their value and momentum characteristics.

Key Points:

• Combines value and momentum factors for enhanced returns.
• Outperformed the S&P 500 and S&P 500 Value Index historically.
• Good liquidity and low trading costs.

Risks:

• Market risk: The value of SPVM's holdings can fluctuate due to market conditions.
• Style risk: Value and momentum styles may underperform in certain market environments.
• Tracking error risk: SPVM may not perfectly track the performance of the underlying index.

Who Should Consider Investing:

SPVM is suitable for investors seeking long-term capital appreciation and who believe in the potential of combining value and momentum factors.

Fundamental Rating Based on AI

Rating: 8/10

SPVM receives a high rating due to its strong track record, competitive advantage, and experienced management team. The ETF's focus on combining value and momentum factors provides potential for enhanced returns compared to traditional value or momentum-focused strategies. However, investors should be aware of the risks associated with market volatility and style performance.

Resources:

• Invesco S&P 500 Value with Momentum ETF website: https://us.invesco.com/content/dam/us/etfs/en/documents/spvm-us-etf-fund-fact-sheet.pdf
• S&P 500 Value with Momentum Index website: https://www.spglobal.com/spdji/en/indices/equity/sp-500-value-with-momentum-index/

Disclaimer:

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