Looking for a smarter way to stay in the market?
What’s ahead for the US economy? The answer is uncertain. But what’s always certain is that investors need growth potential. Here are three strategies that can help you tailor your approach to US stocks for today’s environment.
Break your concentration
A handful of companies have driven the past returns of the S&P 500 Index — and therefore represent an outsized portion of the index today. That’s a situation known as market concentration. Invesco can help you break your concentration in two ways, with Invesco S&P 500 Equal Weight ETF (RSP) and the mid-cap focused Invesco Value Opportunities Fund (VVOIX).
Equal weight
Maintain equal exposure to the S&P 500’s opportunities
If all of your stock investments are in market-cap-weighted strategies like the S&P 500, your equity portfolio may not be as diversified as you think.
The smallest 50 companies in the S&P 500 are about 1% of the index. But from 2004 through 2024, the smallest 50 provided about 5% higher return than the largest 50.1
Invesco S&P 500 Equal Weight ETF (RSP) removes concentration risk by investing equally in all 500 stocks of the S&P 500. This means you’re rarely underexposed to the market’s opportunities.
Mid caps
Explore another level of possibility with mid-cap stocks
Mid caps typically grow faster than larger, more mature businesses but experience less volatility than small, unseasoned start-ups.
Many investors are underexposed to mid-cap stocks. Mid caps make up 20% of US equity market cap but only 9% of US equity investor assets.2
Since the inception of the Russell Midcap Index, mid caps have had higher returns than large caps with less risk than small caps.3
Fine-tune your portfolio
Different stocks can help provide offense or defense to your portfolio, which can help you tailor your investment strategy to changing economic environments. But how can you identify which stocks can help meet your goals? These focused strategies can help.
Diversify your portfolio
Diversification may be especially critical in times of market and economic uncertainty. As you refine your approach to US stocks, it’s important to make sure that the rest of your portfolio complements your strategy. Here are three ideas for diversifying your portfolio:
By Region
International stocks
We believe global equity exposure is particularly important today as non-US assets look increasingly attractive in the second half of this year.
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By asset class
Fixed income
Investors rely on fixed income for dependability and income. We see notable opportunities in investment grade and municipal bond strategies.
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By vehicle
Equity SMAs
Complement portfolios with separately managed accounts (SMAs) customized for investors’ values, tax situation, and liquidity needs.
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Frequently asked questions
The VVOIX team also manages a small-cap portfolio, and it draws on high-conviction ideas from that portfolio to potentially identify mid-cap opportunities early. It follows a rigorous risk management process and sell discipline, seeking to provide downside risk mitigation and outperform the benchmark.
With $630+ billion in US assets under management and a global presence, we are an established provider in the ETF market. Our diverse range of ETFs can help you fine-tune your portfolio exposures to help you meet your investment goals.5
Invesco has been a trusted partner and leader in global, international, and emerging market equities for more than 50 years. Our product offerings are designed to meet a diverse set of investor needs including global, international and emerging market equity.
We bring the vast resources of a global asset manager with the agility to add potential value through security selection. From taxable bonds to tax-free municipals, mutual funds to ETFs and SMAs, we have a wide range of fixed income strategies to help you diversify your portfolios.
We build customized separately managed accounts that seek to deliver tax alpha using a highly systematic, quantitative research-driven investment process via a state-of-the-art portfolio management platform.
International stocks to consider
Fixed income products to consider
| Ticker | Fund Name | Duration | Vehicle | Download |
|---|---|---|---|---|
| GSY | Invesco Ultra Short Duration ETF | Ultrashort | ETF | Fact sheet |
| OPBYX | Invesco Core Bond Fund | Intermediate | Mutual fund | Fact sheet |
| CPBYX | Invesco Core Plus Bond Fund | Intermediate | Mutual fund | Fact sheet |
| GTO | Invesco Total Return Bond ETF | Intermediate | ETF | Fact sheet |
| ORNYX | Invesco Rochester® Municipal Opportunities Fund | Intermediate | Mutual fund | Fact sheet |
| IROC | Invesco Rochester High Yield Municipal ETF | Intermediate | ETF | Fact sheet |
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Class Y shares are closed to most investors. Please see the prospectus for more details.
About risk
Fixed-income investments are subject to credit risk of the issuer and the effects of changing interest rates.
Economic problems in certain US states increase the risk of investing in municipal obligations, such as California, New York or Texas, including the risk of potential issuer default, heightens the risk that the prices of municipal obligations, and the fund's net asset value, will experience greater volatility. See the prospectus for more information.
A value style of investing is subject to the risk that the valuations never improve or that the returns will trail other styles of investing or the overall stock markets.
Factor investing is an investment strategy in which securities are chosen based on certain characteristics and attributes.
Diversification does not guarantee a profit or eliminate the risk of loss.
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.
The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole or returns on securities that have previously exhibited price momentum are less than returns on other styles of investing.
Invesco Distributors, Inc. and their affiliates do not provide legal or tax advice. This information is provided for general educational purposes only and is not to be considered legal or tax advice. Investors should consult with their legal or tax advisors for personalized assistance, including information regarding any specific state law requirements.
While it is not Invesco's intention, there is no guarantee that the Funds will not distribute capital gains to its shareholders.
Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
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.
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.
As with any comparisons, Financial Professionals should be aware of the material differences between Mutual Funds and ETFs. Most ETFs are passively managed, whereas most mutual funds are actively managed. Other differences include, but are not limited to, expenses, management style and liquidity. Financial professionals should make their investors aware of these differences before investing.
There is no assurance that such ETFs will provide low volatility.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the 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.
Alpha is a measure of an investment's performance relative to a benchmark index, adjusted for risk.
The Russell Midcap® Index a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of mid-cap stocks.
The Russell 1000® Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of large-cap stocks.
The Russell 2000® Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of small-cap stocks.
Effective August 22, 2025, the Invesco EQV International Small Company Fund's name will change to Invesco International Small Company Fund. Please refer to the Fund’s prospectus supplements, filed June 23, 2025, for additional information.
Effective August 22, 2025, the Invesco Oppenheimer International Growth Fund's name will change to Invesco International Growth Fund. Please refer to the Fund’s prospectus supplements, filed June 23, 2025, for additional information.
Effective close of business March 21, 2025, the Invesco FTSE FRAFI Emerging Markets ETF’s name changed to “Invesco RAFI Emerging Markets ETF”.
Effective close of business March 21, 2025, the Invesco FTSE RAFI Developed Markets ex-U.S. ETF’s name will change to “Invesco RAFI Developed Markets ex-U.S. ETF”.
