SPLV
Invesco S&P 500® Low Volatility ETF
Explore the benefits of balancing return potential and risk in small-cap stocks.
The Invesco S&P SmallCap Low Volatility ETF is designed for investors seeking exposure to US small-cap stocks with low volatility for both potential upside participation and risk mitigation.
Our low volatility ETFs can potentially minimize the drawdown you experience. The chart depicts the more loss you experience on an investment, the greater gain is needed to bring the investment back to whole.
Get timely answers to important questions regarding this product.
Although there is no set definition, small-cap stocks are generally considered stocks with a market capitalization of roughly $250 million to $2 billion.
XSLV is based on the S&P SmallCap 600 Low Volatility Index, which calculates realized volatility by measuring the standard deviation of a stock over the trailing 12 months.
XSLV’s underlying index, the S&P SmallCap 600 Low Volatility Index, is rebalanced and reconstituted quarterly.
XSLV provides access to the low volatility factor without imposing sector constraints. XSLV’s underlying index rotates — through quarterly scheduled rebalancing — out of the most volatile sectors to provide risk mitigation potential.
XSLV can be used to provide a potentially smoother investment experience by dampening market volatility. In particular, XSLV may appeal to investors seeking equity exposure but who are concerned about deep drawdowns. Finally, XSLV can be combined with riskier strategies to help enhance portfolio diversification.
There is no assurance that such ETFs will provide low volatility.
The Invesco S&P SmallCap Low Volatility ETF seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Low Volatility Index.
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The S&P SmallCap 600® Index measures the small-cap segment of the U.S. equity market. The S&P SmallCap 600® Low Volatility Index consists of 120 out of 600 small-capitalization range securities from the S&P SmallCap 600® Index with the lowest realized volatility over the past 12 months. An investment cannot be made directly into an index.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular sector, such as financials, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Stocks of small-capitalization companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale than large companies.
Standard deviation measures a fund’s range of total returns and identifies the spread of a fund’s short-term fluctuations.
The Fund may become “non-diversified,” as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status under such circumstances.
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