Description

The Invesco S&P 500 High Dividend Low Volatility UCITS ETF (Dist) aims to replicate the total return performance of the S&P 500 Low Volatility High Dividend Index, after accounting for its operational costs. This fund provides income distributions to investors every three months. The Reference Index identifies 50 companies from the S&P 500 that offer both attractive dividend yields and stable stock prices, ensuring they also meet specific criteria for diversification, tradability, and volatility. The selection process begins by ranking all S&P 500 components based on their trailing 12-month dividend yields. The top 75 stocks are initially chosen, with a limit of no more than 10 companies from any single GICS sector. From this pool, the 50 stocks with the lowest historical price volatility are then selected. These chosen securities are weighted according to their dividend yield, subject to caps: no single stock can exceed 3% of the index, and no GICS sector can represent more than 25%. The ETF's strategy is to physically replicate the index, meaning it endeavors to directly acquire and hold all the securities of the Reference Index in their precise weightings, as practically possible. Its portfolio is rebalanced in alignment with adjustments made to the Reference Index, which undergoes its own review and rebalancing each quarter. This is a passively managed fund; therefore, investing in it means purchasing units in an index-tracking fund rather than gaining direct ownership of the underlying assets held within it.