The Invesco S&P 500® Downside Hedged ETF (Fund) is an actively managed exchange-traded fund (ETF) that seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed-income market returns. The Fund seeks to achieve its investment objective by allocating its assets among components of the S&P 500 Dynamic VEQTOR Index (Benchmark). The Benchmark is composed of three types of components: (i) equity, represented by the S&P 500 Index; (ii) volatility hedge, represented by the S&P 500 VIX Short-Term Futures Index; and (iii) cash. The Benchmark is designed to measure the performance of the broad equity markets with an implied volatility1 hedge. The Fund allows investors to receive exposure to the equity and volatility of the S&P 500 Index in a dynamic framework. The Fund allows investors to receive exposure to the equity and volatility of the S&P 500 Index in a dynamic framework.
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|S&P 500 Dynamic VEQTOR Index||4.64||-1.70||2.64||5.16||4.23||5.05|
|S&P 500 Index||20.80||13.84||9.76||12.51||11.82||13.41|
|U.S. 3-Month Treasury Bill Index||4.62||4.98||2.20||1.84||1.22||1.12|
|Fund History (%)|
|After Tax Held||3.54||-3.11||1.55||4.23||2.85||3.61|
|After Tax Sold||2.43||-1.37||1.34||3.46||2.47||3.09|
|Fund Market Price||3.99||-2.10||2.05||4.77||3.69||4.41|
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|S&P 500 Dynamic VEQTOR Index||-1.11||-5.68||-0.08||2.70||4.05||4.58|
|S&P 500 Index||13.07||21.62||10.15||9.92||11.91||12.94|
|U.S. 3-Month Treasury Bill Index||3.70||4.73||1.91||1.74||1.13||1.05|
|Fund History (%)|
|After Tax Held||-2.23||-6.95||-1.19||1.79||2.65||3.12|
|After Tax Sold||-0.99||-3.64||-0.74||1.55||2.32||2.70|
|Fund Market Price||-1.77||-6.27||-0.71||2.32||3.49||3.93|
Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.
Growth of $10,000
Data beginning Fund inception and ending 09/30/2023. Fund performance shown at NAV.
An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
|Fund||Percent of Fund|
as of 12/07/2023 Top Holdings | View All
Fund Holdings subject to change
|Ticker||Company||% of Fund|
|ESZ3||CME E-Mini Standard & Poor's 500 Index Future||11.81|
|IUGXX||Invesco Premier US Government Money Portfolio||8.51|
|UXF4||CBOE Volatility Index Future||1.50|
|META||Meta Platforms Inc||1.37|
Risk & Other Information
1 "Implied volatility" is a measure of the expected volatility of the S&P 500® Index that is reflected in the value of the Chicago Board Options Exchange ("CBOE") Volatility Index ("VIX Index"). Known as the "fear gauge" of the broader U.S. equities market, the VIX Index measures market volatility in large capitalization U.S. stocks and is calculated based on the prices of certain put and call options on the S&P 500® Index.
There are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. 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.
The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
The Chicago Board Options Exchange (CBOE) can make methodological changes to the calculation of the VIX Index that could affect the value of the futures contracts, which could affect the value of your investment.
The Fund may enter into futures contracts on the VIX Index and S&P 500® Index but will not use them for speculative purposes. Futures contracts normally specify a certain date for delivery of the underlying asset for settlement in cash based on the value of that asset. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific instrument or index at a specified future time and at a specified price. Investments in futures contracts on the S&P 500® Index may expose the Fund to counterparty risk with respect to an exchange (i.e., the risk that an exchange or its affiliates will be unable to perform its obligations under the terms of the futures contracts or otherwise defaults).
An investment in exchange-traded funds (ETFs) may trade at a discount to net asset value, fail to develop an active trading market, halt trading on the listing exchange, fail to track the referenced index, or hold troubled securities. ETFs may involve duplication of management fees and certain other expenses. Certain of the ETFs the fund invests in are leveraged, which can magnify any losses on those investments.
Exchange-traded notes (ETNs) are subject to credit risk of the issuer, and the value of the ETN may drop due to a downgrade in the issuer’s credit rating, despite the underlying market benchmark or strategy remaining unchanged.
The Fund currently intends to effect creations and redemptions partially in exchange for cash and partially in kind. However, the Fund also reserves the right to permit or require Creation Units to be issued principally in exchange for cash or in kind. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem principally in-kind.
The Fund is designed to achieve positive total returns in rising or falling markets. Significant short-term price movements could adversely affect the performance of the Fund and cause substantial losses.
The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
The Fund’s investments in futures contracts will cause it to be deemed to be a commodity pool, subjecting it to regulation under the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) rules. The Adviser, a registered Commodity Pool Operator (CPO) and commodity trader advisor (CTA), and the Fund will be operated in accordance with CFTC rules. Registration as a CPO or CTA subjects he Adviser to additional laws, regulations and enforcement policies; all of which could increase compliance costs, affect the operations and financial performance. Registration as a commodity pool may have negative effects on the ability of the Fund to engage in its planned investment program.
The tax treatment of futures may be adversely affected by changes in legislation, regulations or other legally binding authority. If, as a result of any such adverse action, the income of the Fund from certain futures was treated as non-qualifying income, the Fund might fail to qualify as a regulated investment company and be subject to federal income tax at the Fund level.
The Fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
Although, the Adviser actively manages the allocation of the Fund's sleeves, the equity sleeve is “passively” invested in components of the S&P 500® Index. Therefore, the Fund would not necessarily buy/sell a security in its equity sleeve unless that security is added/removed from the S&P 500® Index, even if that security is underperforming. If a specific security is removed from the the S&P 500® Index, the Fund may be forced to sell the security at an inopportune time or for a price lower than its current market value.
The T-Bill 3 Month Index (U.S. Treasury Bills Index) is tracked by Lipper to provide performance for the 3-month U.S. Treasury Bill. The VIX Index is a theoretical calculation and cannot be traded. The VIX Index measures the 30-day forward volatility of the S&P 500 Index as calculated based on the prices of certain put and call options on the S&P 500 Index.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco Capital Management LLC. The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).