Description

This Invesco ETF endeavors to replicate the net total return performance of the FTSE Emerging High Dividend Low Volatility Index, after accounting for fees. It distributes income to investors on a quarterly basis. The underlying benchmark, the FTSE Emerging High Dividend Low Volatility Index, tracks the performance of 100 companies chosen from the broader FTSE Emerging Index. These companies are specifically selected for their combination of attractive dividend yields and low price fluctuations, while also meeting requirements for diversification, volatility, and tradability. The index composition process involves first ranking all constituents of the FTSE Emerging Index by their trailing 12-month dividend yields, from highest to lowest. The top 150 highest-yielding stocks are initially selected. From this group, the 100 companies exhibiting the lowest volatility are then chosen to form the final benchmark. To achieve its objective, the fund aims to acquire and hold, as far as practically possible, all securities within the index according to their respective weightings. The portfolio is adjusted in alignment with any rebalancing events of the benchmark. This strategy is termed full physical replication. As a passively managed ETF, an investment here represents the purchase of units in an index-tracking fund, rather than direct ownership of its underlying assets.