Description

This Invesco Exchange Traded Fund (ETF) aims to replicate the net total return performance, after fees, of the S&P 500 Low Volatility High Dividend Index, which serves as its "Reference Index." Investors in this fund receive income distributions on a quarterly basis. The Reference Index itself is constructed to measure the performance of 50 companies within the S&P 500 that exhibit both high dividend yields and low historical price volatility, while also satisfying specific criteria for diversification, stability, and liquidity. The selection process begins by ranking all S&P 500 constituents based on their trailing 12-month dividend yields, from highest to lowest. From this initial ranking, the top 75 stocks are chosen, subject to a maximum of ten stocks per GICS sector. The final 50 constituents are then identified as those with the lowest realized volatility among this screened group. These selected stocks are weighted within the index according to their dividend yield, with individual stock contributions capped at 3% and any single GICS sector limited to a 25% allocation. To achieve its investment objective, the fund primarily employs a physical replication strategy, endeavoring to purchase and hold, wherever practical, all the securities of the Reference Index in their exact proportions. The fund's portfolio is adjusted in sync with changes to the Reference Index, which undergoes its own review and rebalancing every three months. This ETF operates under a passive management approach; an investment represents an acquisition of units in an index-tracking fund, rather than direct ownership of its underlying assets.