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

Overview

The Invesco S&P 500u00ae ex-Rate Sensitive Low Volatility ETF (XSLV) seeks to track the investment results of the S&P 500 Ex-Rate Sensitive Low Volatility Index. It focuses on U.S. equities, excluding those sensitive to interest rate changes, and targets companies with lower volatility. Asset allocation is primarily stocks, with investment strategy emphasizing risk-adjusted returns through low volatility stock selection.

Reputation and Reliability

Invesco is a well-established global investment management firm with a strong reputation and a long track record of providing various investment products, including ETFs.

Management Expertise

Invesco has a team of experienced portfolio managers and analysts specializing in various investment strategies, including factor-based and low volatility investing.

Goal

To track the investment results of the S&P 500 Ex-Rate Sensitive Low Volatility Index.

Investment Approach and Strategy

Strategy: Tracks the S&P 500 Ex-Rate Sensitive Low Volatility Index.

Composition Primarily holds stocks within the S&P 500 index, excluding rate-sensitive sectors like utilities and real estate. The ETF emphasizes stocks with lower historical volatility.

Market Share: Data unavailable.

Total Net Assets (AUM): 278173429.12

Key Competitors

• Invesco S&P 500 Low Volatility ETF (SPLV)
• iShares MSCI USA Min Vol Factor ETF (USMV)
• AGF US Market Neutral Anti-Beta CAD-Hedged ETF (BXMV.TO)

Competitive Landscape

The competitive landscape includes other low volatility ETFs, some of which target different indices or employ varying methodologies. XSLV's ex-rate sensitive approach differentiates it from competitors. Its advantage lies in excluding rate-sensitive sectors, potentially offering better performance during periods of rising interest rates. However, this also means it might underperform when rate-sensitive sectors are leading the market.

Historical Performance: Historical financial performance data is not available in this format. Please refer to financial data sources for detailed performance metrics over different time periods.

Benchmark Comparison: Data unavailable. Compare with S&P 500 Ex-Rate Sensitive Low Volatility Index.

Expense Ratio: 0.25

Average Trading Volume

The ETF's liquidity is adequate based on its trading volume, allowing for efficient trading under normal market conditions.

Bid-Ask Spread

The bid-ask spread indicates the cost of trading, which can vary based on market conditions and trading volume; lower spreads are generally preferable.

Market Environment Factors

Economic indicators such as inflation and interest rate changes, sector-specific growth prospects, and general market conditions all influence XSLV's performance. The ex-rate sensitive filter makes it particularly influenced by expectations about interest rate changes and their impact on different sectors.

Growth Trajectory

Growth trends depend on the continued investor interest in low volatility strategies and the performance of the S&P 500, excluding rate-sensitive sectors. Changes in strategy and holdings are generally infrequent but can occur to maintain index tracking.

Competitive Edge

XSLV's primary competitive advantage is its unique focus on low volatility stocks within the S&P 500 while excluding rate-sensitive sectors. This approach aims to provide downside protection during periods of market volatility and rising interest rates. Its distinct strategy makes it a valuable tool for investors seeking a low-volatility investment option without exposure to rate-sensitive sectors. The ETF appeals to investors concerned about the impact of rising interest rates on their portfolios.

Volatility

XSLV's historical volatility is expected to be lower than the broader S&P 500 due to its low volatility mandate.

Market Risk

Market risk is inherent due to its investment in equities, and specific risks relate to its concentration in particular sectors and the potential for underperformance if low volatility stocks are out of favor or rate-sensitive sectors perform well.

Ideal Investor Profile

XSLV is suited for investors seeking lower volatility equity exposure, particularly those concerned about the impact of rising interest rates on sectors like utilities and real estate.

Market Risk

XSLV is most suitable for long-term investors seeking downside protection and potentially higher risk-adjusted returns with a tilt away from rate-sensitive sectors.

The Invesco S&P 500u00ae ex-Rate Sensitive Low Volatility ETF (XSLV) offers exposure to low volatility stocks within the S&P 500, excluding rate-sensitive sectors. It aims to provide downside protection and potentially better risk-adjusted returns compared to the broader market. Its unique focus on excluding rate-sensitive sectors makes it attractive for investors concerned about rising interest rates. However, the ETF may underperform if these sectors outperform. XSLV is suitable for long-term investors seeking lower volatility equity exposure with a specific interest rate risk mitigation strategy.

Data Sources:

• Invesco official website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market conditions and ETF strategies may change.