Invesco S&P 500® Top 50 ETF (XLG)

ETF Invesco S&P 500® Top 50 ETF (NYSEARCA: XTOP): An Overview

Profile

Invesco S&P 500® Top 50 ETF is an actively-managed exchange-traded fund designed to provide exposure to the 50 highest-weighted stocks within the S&P 500 index. It seeks to achieve long-term capital appreciation by tracking the performance of this basket of large-cap US companies, offering a diversified approach to investing in the top tiers of the US stock market.

Objective

The primary investment objective of XTOP is to provide long-term capital appreciation by investing in the 50 largest companies in the S&P 500, effectively mirroring the performance of this specific segment of the index.

Issuer

XTOP is issued and managed by Invesco, a global investment manager with over 85 years of experience and a strong reputation for active management strategies and insightful investment solutions.

Reputation and Reliability: Invesco boasts a long and established history in the financial industry, managing over $1.6 trillion in assets across a diverse range of investment products and services. This extensive experience contributes to the company's solid reputation for reliability and expertise in the investment field.

Management: The ETF is overseen by a team of experienced portfolio managers at Invesco who employ a rigorous quantitative approach to selecting the top 50 stocks from the S&P 500. This team leverages its extensive knowledge and analytical capabilities to identify companies with strong growth potential and leadership within their respective industries.

Market Share and Total Net Assets

XTOP holds a market share of approximately 0.03% within the broad US equity ETF landscape. As of October 26th, 2023, the ETF's total net assets amount to $2.44 billion.

Moat

The ETF's competitive advantages include:

• Unique Investment Strategy: XTOP's focus on the top 50 companies in the S&P 500 distinguishes it from traditional broad-market index funds, potentially offering enhanced returns by focusing on industry leaders with strong market positions and growth potential.
• Active Management Expertise: Invesco's experienced portfolio management team actively selects and weighs the holdings within the ETF, aiming to outperform the broader S&P 500 through strategic stock selection and dynamic portfolio adjustments.
• Cost Efficiency: XTOP offers a relatively low expense ratio compared to other actively-managed ETFs, making it a cost-effective option for investors seeking active management benefits without incurring excessive fees.