Invesco S&P 500 QVM

ETF description

This ETF is designed to track the performance of a group of large US‑listed companies, selected based on a combination of three factors: quality, value, and momentum. These terms relate to characteristics such as how stable a company’s earnings have been, how its shares are priced compared to its financial performance, and how its share price has been trending over time. The idea is to include firms that score well across these different areas, rather than simply tracking the largest companies by size.

This ETF might be of interest to investors who want exposure to US companies but prefer an approach that considers a broader range of company traits beyond size alone.

Issuer details

Invesco is one of the world’s largest ETF providers with over US$680 billion globally in ETF assets under management (as at 31 March 2024). It offers over 140 EMEA ETFs spanning regions and strategies across equities, fixed income and commodities.

Its culture of innovation lets it find new opportunities for investors, as well as ways to improve the performance of core ETF exposures.

Index details

The Invesco S&P 500 QVM UCITS ETF Dist aims to provide the net total return performance of the S&P 500 Quality, Value & Momentum Multi‑factor Index (the ‘“Reference Index”’), less the impact of fees. The fund distributes dividends on a quarterly basis.

The Reference Index aims to represent the performance of those companies within the S&P 500 Index which have the highest aggregate exposure to three investment factors: quality, value and momentum. To determine the components of the Reference Index, all companies included in the S&P 500 Index are assigned scores based on their performance against these three factors. These scores are then combined on an equal‑weighted basis into a final factor composite. All companies are then ranked by their final factor composite with the top 100 companies being selected for inclusion in the Index, subject to a buffer rule which aims to reduce turnover. The weight for each component in the Benchmark will range between 0.05% and the lessor of 5% or 20 times its market capitalisation weight. The weight of each sector is capped at 40% for the purposes of seeking to avoid sector concentration.