
Invesco ETFs
Explore our lineup of ETFs and see how they can be cost-effective and tax-efficient for maximizing your investments and building long-term wealth.
Commodities and pure value equity strategies are historically the most efficient hedge for inflation, based on inflation beta.1 The visual above shows the inflation beta for major indexes representing certain assets classes and investment styles. The higher the inflation beta, the better the asset class performed during inflationary periods.
Inflation Beta is a metric used to evaluate an asset class’ ability to hedge inflation. It measures the change in inflation against the return of the asset class over a specific time period (1998 – 2023 in the chart above). Inflation Beta is defined as the slope of the regression line between the asset’s yearly returns and year-over-year Consumer Price Index on the last day of each year (Ex: For 2023, use year over year Consumer Price Index on Dec 31, 2023) Source: Invesco and Bloomberg L.P. as of Dec. 31, 2023.
Fund | Ticker | Description | Asset class | Learn more |
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Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | PDBC | Provides access to commodity-linked futures and other financial instruments that provide economic exposure to a diverse group of the world's most heavily traded commodities. | Commodities | Fact sheet |
Invesco S&P 500 Revenue ETF | RWL | Uses a rules-based approach that re-weights securities of the S&P 500 Index according to the revenue earned by the companies, with a maximum 5% per company weighting. | US Equity | Fact sheet |
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Based on our analysis of the historical inflation betas (using data from 1998-2023) commodities had the highest inflation beta, making it historically the most efficient inflation hedge among the group. Value stocks were higher than large cap stocks, making it historically a more efficient inflation hedge versus large cap stocks. Inflation beta is a metric used to evaluate an asset class's ability to hedge inflation. It measures the change in inflation against the return of the asset class over a specific time period (i.e., it describes the return of an asset class given a 1% increase in inflation.) DBIQ OY Commodity Index – The DBIQ Optimum Yield Diversified Commodity Index is a rule-based index composed of futures contracts of the 14 most heavily-traded and important global commodities. The S&P 500® Revenue-Weighted Index is constructed using a rules-based approach that re-weights securities of the S&P 500® Index according to the revenue earned by the companies, with a maximum 5% per company weighting. The S&P 500 Index is a market-capitalization-weighted index (largest companies based on market capitalization make up largest portion of the index) consisting of the 500 largest, most prominent, publicly-traded companies in the U.S. as determined by S&P. XAU – Gold spot price quoted in US Dollars.
Inflation can undermine your clients’ financial goals by eroding the value of their investments over time. But investments such as commodities and attractively valued stocks have historically provided an inflation hedge and helped investors navigate rising prices.
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Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
Invesco does not offer tax advice. Please consult your tax adviser for information regarding your own personal tax situation.
Commodities may subject an investor to greater volatility than traditional securities such as stocks and bonds. Investments focused in a particular sector, such as real estate, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
A value style of investing is subject to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market.