Invesco FTSE RAFI US 1000

ETF description

This ETF aims to follow the performance of a group of large US‑listed companies, selected and weighted based on measures of a company’s size that are linked to its business performance, rather than its share price. Specifically, the selection process considers factors such as sales, cash flow, dividends, and the book value of a company’s assets. These criteria help to identify and give more weight to companies that are considered large and well‑established according to their financial fundamentals, rather than by how much the market is currently willing to pay for their shares.

This ETF might be suitable for investors looking for a rules‑based approach to US stocks that places more emphasis on a company’s financial foundations.

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 FTSE RAFI US 1000 UCITS ETF Dist aims to provide the net total return performance of the FTSE RAFI US 1000 Index (the ‘“Reference Index”’), less the impact of fees. The fund distributes dividends on a quarterly basis.

The Reference Index is designed to break with the traditional price‑based market cap weighted index design and instead derives its constituent weights from fundamental measures of company size. Its constituents are selected and weighted using four fundamental factors: Sales (averaged over the prior five years), Cash Flow (averaged over the prior five years), Book Value (at the review date), and Dividends (total dividend distributions averaged over the last five years).