Invesco S&P SmallCap Value with Momentum ETF (XSVM)

Overview

The Invesco S&P SmallCap Value with Momentum ETF (XSVM) seeks to track the investment results of the S&P SmallCap 600 High Momentum Value Index. This fund focuses on U.S. small-cap companies exhibiting both value and momentum characteristics.

Reputation and Reliability

Invesco is a well-established global investment management firm with a long track record and a broad range of ETF offerings.

Management Expertise

Invesco has a dedicated team of portfolio managers and analysts with experience in factor-based investing and ETF management.

Goal

Seeks to track the investment results of the S&P SmallCap 600 High Momentum Value Index.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index focused on small-cap companies with value and momentum characteristics.

Composition The ETF primarily holds stocks of small-cap U.S. companies identified as having both value and momentum attributes.

Market Share: XSVM has a moderate market share within the smart beta small-cap ETF category.

Total Net Assets (AUM): 61790000

Key Competitors

• Avantis U.S. Small Cap Value ETF (AVUV)
• Dimensional US Small Cap Value ETF (DFSV)
• Vanguard Small-Cap Value ETF (VBR)

Competitive Landscape

The small-cap value ETF market is competitive, with several established players. XSVM's advantage lies in its specific focus on both value and momentum factors. However, it faces competition from broader small-cap value ETFs with lower expense ratios and higher AUM, potentially offering greater liquidity.

Historical Performance: Historical performance data should be obtained from reliable financial data providers to understand XSVM's returns, volatility, and risk-adjusted returns over various time periods.

Benchmark Comparison: Compare XSVM's performance against the S&P SmallCap 600 High Momentum Value Index to assess tracking accuracy and potential alpha generation.

Expense Ratio: 0.39

Average Trading Volume

XSVM's average trading volume indicates moderate liquidity, facilitating relatively easy buying and selling of shares. Data should be obtained from reliable financial data providers to understand XSVM's Average trading volume

Bid-Ask Spread

The bid-ask spread provides insight into the cost of trading XSVM; a narrower spread suggests lower transaction costs.

Market Environment Factors

Economic growth, interest rates, and investor sentiment towards small-cap stocks significantly impact XSVM's performance. Sector-specific trends within the small-cap universe also play a crucial role.

Growth Trajectory

XSVM's growth depends on the continued popularity of factor-based investing and the relative performance of value and momentum strategies within the small-cap segment. Any changes to the index methodology or the fund's investment strategy would influence its future trajectory.

Competitive Edge

XSVM's competitive edge lies in its unique combination of value and momentum factors within the small-cap space. This targeted approach may appeal to investors seeking a specific factor tilt. Invesco's experience in factor-based ETFs further supports the fund. However, this specialized focus can also limit its appeal compared to broader small-cap value offerings. Also, it could be argued that factor investing is not consistently profitable or outperforming other strategies.

Volatility

Assess XSVM's historical volatility, using metrics such as standard deviation, to understand its price fluctuations and potential for short-term losses.

Market Risk

XSVM is subject to market risk, particularly related to small-cap stocks. The fund is exposed to economic downturns, industry-specific challenges, and potential underperformance of the value and momentum factors.

Ideal Investor Profile

The ideal investor for XSVM is someone seeking exposure to small-cap stocks with a value and momentum tilt. Investors comfortable with potentially higher volatility than broader market ETFs and who are willing to accept factor investing are potential candidates.

Market Risk

XSVM may be suitable for long-term investors seeking factor-based diversification within their small-cap allocation. Active traders could also use it to express specific views on value and momentum factors.

The Invesco S&P SmallCap Value with Momentum ETF (XSVM) offers a targeted approach to small-cap investing by focusing on stocks exhibiting both value and momentum characteristics. While it provides a differentiated investment strategy, its specialized focus makes it unsuitable for all investors, particularly those with low-risk tolerances. The fund's performance is closely tied to the success of its factor-based strategy and the overall health of the small-cap market. Investors should carefully consider the risks and potential rewards before investing in XSVM.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.