Description

This Invesco S&P 500 Low Volatility UCITS ETF Acc is designed to replicate the total investment return of the S&P 500 Low Volatility Index, net of its operational expenses. The core Reference Index selects the 100 stocks from the broader S&P 500 index that have exhibited the most stable prices. Its construction involves assessing the historical price volatility of every security within the S&P 500. Specifically, "realised volatility" is defined as the standard deviation of a security's daily price movements over the prior year. Securities are then ranked by their inverse volatility, and the one hundred with the lowest realised volatility are chosen. This index is reviewed and rebalanced every three months. To meet the fund's objective, portfolio managers employ advanced modeling techniques to invest in a carefully selected subset of the index's components, rather than buying every single security. This "sampling" method allows the fund to track the index's performance as closely as possible while keeping costs lower than full replication. This ETF is managed passively, meaning it doesn't involve active stock picking by managers. When you invest in this fund, you are purchasing units in an index-tracking fund, not directly owning the underlying stocks it holds.