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

Overview

The Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV) seeks to provide investment results that generally correspond to the price and yield of the S&P 500 Ex-Rate Sensitive Volatility Index. The fund focuses on selecting stocks from the S&P 500 with low volatility characteristics while excluding those sensitive to interest rate changes. This ETF aims to offer lower volatility exposure compared to the broader S&P 500 index.

Reputation and Reliability

Invesco is a well-established and reputable asset management firm with a long history in the ETF market. They are known for offering a wide range of investment products.

Management Expertise

Invesco has a dedicated team of portfolio managers and analysts with expertise in quantitative investing and ETF management.

Goal

To track the S&P 500 Ex-Rate Sensitive Volatility Index, providing exposure to low volatility stocks within the S&P 500 while excluding those sensitive to interest rate changes.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index, the S&P 500 Ex-Rate Sensitive Volatility Index. This index is designed to measure the performance of the 100 least volatile stocks from the S&P 500, after excluding stocks deemed sensitive to interest rate changes.

Composition The ETF primarily holds stocks. The holdings are rebalanced periodically to maintain the desired low volatility and ex-rate sensitivity characteristics.

Market Share: The market share of XRLV is moderate within the low volatility ETF segment.

Total Net Assets (AUM): 356481407.17

Key Competitors

• Invesco S&P 500u00ae Low Volatility ETF (SPLV)
• iShares MSCI USA Min Vol Factor ETF (USMV)
• AGF US Market Low Volatility ETF (USLV)

Competitive Landscape

The low volatility ETF market is competitive, with several large players offering similar strategies. XRLV's advantage lies in its exclusion of rate-sensitive stocks, which may appeal to investors concerned about interest rate risk. However, its AUM is lower than some of its larger competitors, indicating less investor adoption. SPLV and USMV both offer lower volatility options based on different methodologies, and each caters to a slightly different investor profile. The choice between these ETFs depends on the investor's specific preferences and risk tolerance.

Historical Performance: Historical performance data needs to be pulled dynamically from financial sources. Please consult financial data providers for specific performance numbers.

Benchmark Comparison: Benchmark comparison needs to be pulled dynamically from financial sources to evaluate the ETFu2019s effectiveness.

Expense Ratio: 0.25

Average Trading Volume

The ETF's average trading volume suggests adequate liquidity for most investors but should be checked frequently for changes. (Approx. 12,594 according to recent data)

Bid-Ask Spread

The bid-ask spread, typically a few cents, reflects the cost of trading the ETF and can vary based on market conditions.

Market Environment Factors

Economic indicators, sector growth, and interest rate policies are all factors that affect XRLV. Specifically, the ETF is designed to mitigate interest rate risk, and its performance will be influenced by changes in interest rates.

Growth Trajectory

The ETF's growth trajectory depends on investor demand for low volatility strategies and the effectiveness of its ex-rate sensitive stock selection. Changes to strategy and holdings should be monitored through fund filings and press releases.

Competitive Edge

XRLV's competitive advantage lies in its unique approach to low volatility investing by excluding rate-sensitive stocks. This feature differentiates it from other low volatility ETFs and may appeal to investors concerned about the impact of rising interest rates. The targeted approach offers a specific niche that may provide downside protection in certain economic environments. However, it may underperform broader low volatility ETFs if interest rates remain stable or decline. The fund could benefit from increased investor awareness of its distinct investment profile.

Volatility

Historical volatility needs to be analyzed and compared to other low volatility ETFs to assess XRLV's risk profile.

Market Risk

Market risk depends on the specific industries and sectors of the underlying assets. Interest rate risk is mitigated by the index methodology but overall market downturns can still negatively affect performance.

Ideal Investor Profile

The ideal investor for XRLV is one who is risk-averse, seeks lower volatility compared to the broad market, and is concerned about the potential negative impact of rising interest rates on equity investments.

Market Risk

XRLV is best suited for long-term investors seeking a defensive equity allocation and who want to mitigate interest rate risk.

The Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV) provides targeted exposure to low volatility stocks within the S&P 500, while excluding those sensitive to interest rates. Its investment objective is to track the S&P 500 Ex-Rate Sensitive Volatility Index. XRLV may be suitable for risk-averse investors concerned about interest rate fluctuations, especially those seeking a defensive equity allocation. Its unique approach differentiates it from other low volatility ETFs, potentially offering downside protection in specific economic environments.

Data Sources:

• Invesco Official Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on your own due diligence and consultation with a financial advisor. Market data is subject to change.