Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF (XRLV)

Overview

The Invesco S&P 500u00ae ex-Rate Sensitive Low Volatility ETF (XRLV) seeks to provide investment results that correspond generally to the price and yield of the S&P 500u00ae ex-Rate Sensitive Low Volatility Index. The fund invests in a portfolio of stocks representing approximately 100 of the least volatile stocks in the S&P 500u00ae Index, excluding companies that are considered rate-sensitive sectors such as Real Estate and Utilities. The ETF aims for capital appreciation with lower volatility than the broader S&P 500.

Reputation and Reliability

Invesco is a well-established and reputable global investment management firm with a long track record of managing ETFs.

Management Expertise

Invesco has extensive expertise in managing a wide range of ETF products, including low volatility strategies, and employs experienced portfolio managers and analysts.

Goal

To track the investment results, before fees and expenses, of the S&P 500u00ae ex-Rate Sensitive Low Volatility Index.

Investment Approach and Strategy

Strategy: The fund employs a passive management strategy, attempting to replicate the performance of the underlying index.

Composition The ETF primarily holds a portfolio of stocks selected from the S&P 500u00ae Index, excluding rate-sensitive sectors, based on their low volatility characteristics.

Market Share: The market share of XRLV is relatively small compared to broad-based S&P 500 ETFs and other low volatility ETFs.

Total Net Assets (AUM): 299898773

Key Competitors

• Invesco S&P 500 Low Volatility ETF (SPLV)
• iShares MSCI USA Minimum Volatility Factor ETF (USMV)
• Legg Mason Low Volatility High Dividend ETF (LVHD)

Competitive Landscape

The ETF industry is highly competitive. XRLV competes with other low volatility ETFs. Its advantage lies in the rate sensitivity exclusion, targeting investors specifically seeking lower volatility without real estate and utilities exposure. A disadvantage can be lower yield compared to high dividend ETFs.

Historical Performance: Historical performance data needs to be retrieved from financial data providers such as Bloomberg, Yahoo Finance, or Morningstar.

Benchmark Comparison: Benchmark comparison should be made against the S&P 500 Index and the S&P 500 ex-Rate Sensitive Low Volatility Index.

Expense Ratio: 0.13

Average Trading Volume

The ETF's average trading volume is moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting good liquidity and efficient trading.

Market Environment Factors

Economic conditions, interest rate movements, and overall market volatility influence the fund. Lower volatility stocks tend to outperform during market downturns or periods of uncertainty.

Growth Trajectory

Growth depends on investor demand for low volatility strategies, especially during periods of market uncertainty. Strategy and holdings remain consistent unless dictated by index changes.

Competitive Edge

XRLV's competitive advantage is its specific focus on excluding rate-sensitive sectors while maintaining a low volatility profile, targeting investors who are concerned about the impact of rising interest rates on their portfolio. This differentiation provides a targeted exposure to a specific risk factor within the low volatility space. The fund's low expense ratio contributes to its competitiveness. This feature is important for investors comparing different low volatility ETFs to select the ETF with the most cost-effective structure.

Volatility

XRLV is designed to exhibit lower volatility compared to the broader market, but it will still experience fluctuations in value.

Market Risk

Market risk is inherent in the ETF's underlying assets, which are stocks. The exclusion of rate-sensitive sectors may reduce interest rate risk but does not eliminate market risk.

Ideal Investor Profile

Investors seeking lower volatility exposure to the S&P 500, while excluding rate-sensitive sectors like real estate and utilities, are suitable for XRLV.

Market Risk

XRLV is suitable for long-term investors seeking capital appreciation with reduced volatility compared to the broad market.

Invesco's XRLV offers a focused approach to low volatility investing by excluding rate-sensitive sectors from the S&P 500. Its competitive advantage is its sector exclusion and its low expense ratio. It suits long-term investors looking for lower volatility exposure, particularly those concerned about interest rate impacts. However, investors should acknowledge its moderate market share and liquidity within its segment.

Data Sources:

• Invesco official website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.