Invesco S&P MidCap Low Volatility ETF (XMLV)

Overview

The Invesco S&P MidCap Low Volatility ETF (XMLV) seeks to provide investment results that correspond generally to the price and yield of the S&P MidCap 400 Low Volatility Index. The fund invests in stocks of mid-capitalization companies that exhibit low volatility characteristics. This ETF is designed for investors seeking exposure to the mid-cap market with a focus on mitigating risk through low volatility.

Reputation and Reliability

Invesco is a well-established and reputable asset management firm with a long track record of providing investment products and services. They are a leading global investment manager.

Management Expertise

Invesco has extensive expertise in managing ETFs and other investment vehicles. Their management team comprises experienced professionals with a strong understanding of financial markets and investment strategies.

Goal

To track the S&P MidCap 400 Low Volatility Index and provide investment results that correspond generally to the price and yield of the index.

Investment Approach and Strategy

Strategy: The ETF aims to track the S&P MidCap 400 Low Volatility Index, which measures the performance of 80 least volatile mid-cap companies in the S&P MidCap 400 Index over the past year.

Composition The ETF primarily holds stocks of mid-cap companies selected based on their low volatility characteristics. Sector allocation varies depending on the volatility of the constituent companies.

Market Share: The ETF has a significant market share within the low volatility mid-cap ETF segment.

Total Net Assets (AUM): 1337981045

Key Competitors

• SPDR S&P 400 Mid Cap ETF (MDY)
• iShares Core S&P Mid-Cap ETF (IJH)
• Vanguard Mid-Cap ETF (VO)

Competitive Landscape

The competitive landscape is characterized by several ETFs tracking the broader mid-cap market, with XMLV differentiating itself through its low volatility focus. XMLV's advantage lies in its specific focus on low volatility, potentially offering downside protection during market downturns. However, it may underperform during strong bull markets compared to broader mid-cap ETFs.

Historical Performance: Historical performance data is not directly available without API access; however, it is generally correlated with the S&P MidCap 400 Low Volatility Index. Performance varies with market conditions.

Benchmark Comparison: The ETF's performance is closely compared to the S&P MidCap 400 Low Volatility Index. Deviations from the index can occur due to tracking error and fund expenses.

Expense Ratio: 0.25

Average Trading Volume

XMLV's liquidity is moderate, with an average daily trading volume sufficient for most retail investors. The recent trading volume has been about 133818.

Bid-Ask Spread

The bid-ask spread for XMLV is generally tight, reflecting its moderate trading volume and market interest.

Market Environment Factors

Economic indicators, interest rates, and overall market sentiment influence XMLV. Sector performance within the mid-cap space also affects the ETF's returns.

Growth Trajectory

The growth trajectory of XMLV depends on the popularity of low volatility strategies and the performance of the mid-cap market. Changes in the index methodology can also impact its holdings and performance.

Competitive Edge

XMLV's competitive edge is its focus on low volatility within the mid-cap space. This differentiates it from broader mid-cap ETFs, attracting investors seeking downside protection. The ETF's established track record and Invesco's brand recognition also contribute to its appeal. Its strategy is implemented by selecting the 80 least volatile companies in the index.

Volatility

XMLV is designed to exhibit lower volatility than the broader mid-cap market. However, it is still subject to market risk and can experience fluctuations in value.

Market Risk

The primary market risk is related to the performance of the underlying mid-cap stocks. Changes in economic conditions, industry trends, and company-specific factors can all impact the ETF's returns.

Ideal Investor Profile

The ideal investor for XMLV is a risk-averse investor seeking exposure to the mid-cap market with reduced volatility. It suits investors looking for potentially stable returns and downside protection during market downturns.

Market Risk

XMLV is best suited for long-term investors who prioritize capital preservation and are comfortable with potentially lower returns compared to broader market indices. It's a good fit for passive index followers seeking lower volatility.

The Invesco S&P MidCap Low Volatility ETF (XMLV) offers exposure to the mid-cap market with a focus on mitigating risk through low volatility. The fund tracks the S&P MidCap 400 Low Volatility Index and invests in stocks that exhibit low volatility characteristics. While it may underperform in bull markets, it provides a degree of downside protection during market declines. It's suitable for risk-averse investors seeking a stable return in the mid-cap space.

Data Sources:

• Invesco Official Website
• S&P Dow Jones Indices
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly and affect the performance of ETFs. Consult with a financial advisor before making any investment decisions.