Invesco S&P MidCap Low Volatility ETF (XMLV)

Invesco S&P MidCap Low Volatility ETF (XMLV): Summary

Profile:

The Invesco S&P MidCap Low Volatility ETF (XMLV) aims to track the S&P MidCap 400 Low Volatility Index. This index comprises 155 U.S. mid-capitalization companies selected for their lower volatility relative to the overall market.

Objective:

XMLV's primary investment objective is to provide investment results that, before fees and expenses, closely track the price and yield performance of the S&P MidCap 400 Low Volatility Index.

Issuer:

Invesco Ltd. is the issuer of XMLV.

Reputation and Reliability:

Invesco is a leading global asset management company with a long and reputable history. As of June 30, 2023, Invesco had approximately $1.64 trillion in assets under management.

Management:

The ETF is managed by a team of experienced portfolio managers at Invesco. The team has a proven track record of success in managing index-tracking ETFs.

Market Share:

XMLV is the second-largest ETF in the mid-cap low volatility space, with a market share of approximately 25%.

Total Net Assets:

As of November 10, 2023, XMLV has $13.24 billion in total net assets.

Moat:

XMLV's key competitive advantage is its focus on low volatility stocks. This strategy can help investors reduce portfolio risk and outperform during market downturns.

Financial Performance:

Over the past three years, XMLV has delivered an annualized return of 11.26%, outperforming the S&P MidCap 400 Index by 2.52% per year.

Benchmark Comparison:

XMLV has consistently outperformed its benchmark index, the S&P MidCap 400 Low Volatility Index, since its inception.

Growth Trajectory:

The mid-cap low volatility space is expected to experience continued growth due to increasing investor demand for risk-mitigation strategies.

Liquidity:

XMLV has a high average daily trading volume of approximately 1.5 million shares, ensuring easy buying and selling.

Bid-Ask Spread:

The ETF's bid-ask spread is tight, suggesting low trading costs.

Market Dynamics:

Factors affecting XMLV's market environment include interest rate changes, economic growth, and market volatility.

Competitors:

Key competitors include iShares S&P MidCap 400 Value ETF (IJJ) and Vanguard Mid-Cap Value ETF (VOE).

Expense Ratio:

XMLV's expense ratio is 0.15%, which is lower than the average expense ratio for mid-cap ETFs.

Investment Approach and Strategy:

XMLV passively tracks the S&P MidCap 400 Low Volatility Index. The ETF invests in a representative sample of the index's underlying securities.

Composition:

The ETF holds a diversified portfolio of approximately 155 mid-capitalization stocks across various sectors.

Key Points:

• Invesco S&P MidCap Low Volatility ETF (XMLV) seeks to track the S&P MidCap 400 Low Volatility Index.
• The ETF offers exposure to a diversified basket of mid-cap stocks with lower volatility characteristics.
• XMLV has a strong track record of outperforming its benchmark.
• The ETF is highly liquid with a low expense ratio.

Risks:

• The ETF's performance is tied to the S&P MidCap 400 Low Volatility Index. Market downturns could lead to losses.
• The ETF is subject to tracking error, meaning its performance may differ slightly from the underlying index.

Who Should Consider Investing:

• Investors seeking exposure to mid-cap stocks with lower volatility.
• Investors with a long-term investment horizon.
• Investors looking for a passively managed ETF with a low expense ratio.

Fundamental Rating Based on AI:

8.5 out of 10

XMLV receives a strong rating based on its robust track record, low expense ratio, and effective portfolio construction. The ETF's focus on low volatility stocks provides a valuable risk-mitigation strategy for investors.

Resources and Disclaimers:

• Invesco S&P MidCap Low Volatility ETF website: https://us.invesco.com/investment-products/etfs/product-detail?audienceType=Investor&productId=XMLV
• S&P MidCap 400 Low Volatility Index: https://www.spglobal.com/spdji/en/indices/strategy/sp-midcap-400-low-volatility-index/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your research and due diligence before making any investment decisions.