Description

This Invesco S&P 500 High Dividend Low Volatility UCITS ETF (ticker: HDLG.L) is designed to deliver the net total return performance of the S&P 500 Low Volatility High Dividend Index, subtracting the effect of its fees. Investors in this fund receive dividend distributions every three months. The underlying index tracks the performance of 50 companies chosen from the broader S&P 500, specifically targeting those with both high dividend yields and low volatility, while adhering to diversification and tradability criteria. To construct this index, all S&P 500 components are initially ranked based on their trailing 12-month dividend yields. The top 75 stocks are then provisionally selected, with a maximum of 10 companies allowed from any single GICS sector. From these, the 50 exhibiting the lowest historical volatility are ultimately chosen. These selected companies are weighted according to their dividend yield, though individual stock exposure is capped at 3% and no single GICS sector can exceed 25% of the index's total weight. To achieve its investment goal, the ETF employs a physical replication strategy, meaning it endeavors to acquire and hold, to the greatest extent feasible, every security present in the Reference Index, maintaining their proportional weightings. The ETF's portfolio is adjusted to mirror any changes made to the Reference Index, which itself undergoes a comprehensive review and rebalancing process every quarter. Operating under a passive management approach, this exchange-traded fund tracks its benchmark index. Consequently, when you invest, you are purchasing units in this index-tracking fund, not directly owning the individual assets held within the fund's portfolio.