Leverage our ETF factor insights

What may benefit value stocks

Value investing may be well-positioned in today's economic climate. Several macroeconomic trends may be converging to create favorable conditions for undervalued, fundamentally strong companies. The potential for higher inflation and elevated interest rates can lead to tighter monetary policies, making richly valued growth investments less attractive while reinforcing the appeal of businesses with solid earnings and tangible assets. Additionally, rising industrial production and a growing emphasis on onshoring, driven by supply chain resiliency efforts and geopolitical shifts, may favor established companies with strong domestic operations. These tailwinds can make value stocks an attractive choice for investors seeking stability and sustainable returns in a shifting market environment.

While the goal of value investing is to find companies trading at a discount to intrinsic value, approaches to identifying value vary widely and can significantly affect exposures. In addition, with the broader market being driven in large part by a narrow group of mostly growth stocks the last few years, client portfolios that tilted toward benchmark weights may have unintentional growth biases.

Slightly more value exposure: RSP

Just as all value investments are not alike, investors’ value preferences and needs are not all alike either. For an investor looking to tilt a portfolio to slightly more value, and lighten up on mega-growth exposure, RSP may be appealing. It equally weights all the constituents in the S&P 500 Index at each quarterly rebalance, and in doing so, provides a blended portfolio that tilts exposure slightly more toward value than the capitalization-weighted S&P 500 Index.

Broad-based value strategy: PRF and RWL

For investors interested in broad-based strategies that provide higher value load, fundamentally weighted strategies like PRF or RWL may be appealing. PRF weights approximately 1,000 of the largest US companies using four fundamental measures of firm size: book value plus intangibles, cash flow, sales, and dividends. RWL re-weights securities of the S&P 500 Index according to the revenue earned by the companies. Both provide a more consistent value exposure by severing the link between market capitalization and weighting.

Get more information on these ETFs below this video.

Important Information

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges, and expenses. For this and more complete information about the Fund call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus.

Past performance is not a guarantee of future results. An investment cannot be made into an index.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

The opinions expressed are those of Invesco, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

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 industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

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.

PRF

Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

RSP

Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, or 150,000 Shares.

Invesco Distributors, Inc.             6/25                  NA 4572702

Hello, my name is John Frank - ETF Specialist Team Lead here at Invesco.

Today, I’ll walk you through our monthly factor dashboard, developed by our factor experts, that can be used as a valuable resource when considering factor implementation both tactically and strategically within your portfolios.

Many investors who use this piece start with the Factor Snapshot to review factor performance on a monthly basis. We highlight performance of six rewarded factors: quality, dividend yield, value, size, low volatility, and momentum. This is helpful to understand the performance of individual factors on a monthly and annual basis and how it relates back to your current allocations.

Another useful section is the Regime signal update. Regime is something that we commonly discuss as it relates to our Dynamic Multifactor lineup to highlight the shift of factors based on current economic indicators. However, this information could also be useful to help manage single factor allocations in your portfolio.  The Regime signals will be updated monthly based on leading economic indicators and identify which factors have historically performed best in those economic environments.

Finally, jumping to the Factors by fund section which provides an overview of Invesco’s factor ETFs. On the left you will find the ETF ticker and name while on the right the current exposure to each factor. As you are implementing factors in a portfolio this can help you evaluate if you are currently overexposed to certain factors and what strategies could be a potentially useful complement to your current allocations.

Our factor dashboard is one example of the many resources we have available to provide timely factor updates and implementation ideas.