Description

The Invesco FTSE Emerging Markets High Dividend Low Volatility UCITS ETF (EMHD.L) strives to replicate the net total return performance of the FTSE Emerging High Dividend Low Volatility Index, after accounting for its various fees. This fund pays out income to its investors on a quarterly schedule. The benchmark index, known as the FTSE Emerging High Dividend Low Volatility Index, is designed to track the performance of 100 companies within the broader FTSE Emerging Index that demonstrate both high dividend yields and subdued price fluctuations. Its construction process involves several steps: initially, all companies listed in the FTSE Emerging Index are ranked according to their dividend yield over the preceding twelve months. From this ranking, the top 150 highest-yielding stocks are identified. Subsequently, the 100 companies from this group that exhibit the lowest volatility are chosen for inclusion in the index, provided they also meet specific criteria related to diversification, market volatility, and ease of trading. To achieve its investment objective, the ETF primarily utilizes a full physical replication strategy. This entails purchasing and holding, to the greatest extent feasible, all the individual securities that constitute the benchmark index, while maintaining their correct proportional weightings. The fund's portfolio is adjusted or rebalanced whenever the underlying index undergoes a similar change. This ETF operates as a passively managed, index-tracking investment vehicle, meaning an investment constitutes ownership of units in the fund itself, rather than direct ownership of the underlying assets.