Invesco has five funds in its suite of low volatility ETFs that can help investors navigate turbulence in equity markets.
Low volatility ETFs surged in interest during last year’s volatile market and are a preferred way to participate in upside potential while also mitigating risk over time.
Invesco’s suite of low volatility ETFs use a pure approach to access the low volatility factor, allowing the funds to rotate out of the most volatile stocks and sectors at each quarterly rebalancing. The methodology offers exposure to the least volatile stocks over the past 12 months within the parent index, according to Invesco.
1. Invesco S&P 500 Low Volatility ETF (SPLV)
With $10.2 billion in assets under management, SPLV is the largest low volatility equity ETF available to investors, according to ETF Database. The fund has seen $243 million in net flows over the past one-month period; SPLV has taken in $782 million in the past year.
SPLV is based on the S&P 500 Low Volatility Index, which consists of the 100 securities from the S&P 500 Index with the lowest realized volatility over the past 12 months.
2. Invesco S&P MidCap Low Volatility ETF (XMLV)
XMLV is based on the S&P MidCap 400 Low Volatility Index, which consists of 80 out of 400 medium-capitalization securities from the S&P MidCap 400 Index with the lowest realized cap over the past 12 months. XMLV has $1 billion in assets under management and has seen $29 million in outflows over the past month.
3. Invesco S&P SmallCap Low Volatility ETF (XSLV)
XSLV tracks the S&P SmallCap 600 Low Volatility Index, which includes 120 out of 600 small-cap securities from the S&P SmallCap 600® Index with the lowest realized volatility over the past 12 months.
XSLV has $500 million in assets under management and has lost $137 million in net outflows over a one-month period.
4. Invesco S&P International Developed Low Volatility ETF (IDLV)
IDLV is based on the S&P BMI International Developed Low Volatility Index. IDLV’s underlying index measures the realized volatility of the Index’s 200 constituents over the trailing 12 months and weights constituents so that the least volatile stocks receive the highest weights.
IDLV has $628 million in assets; the fund has accreted $142 million in net flows over a one-month period.
5. Invesco S&P Emerging Markets Low Volatility ETF (EELV)
EELV provides exposure to the S&P BMI Emerging Markets Low Volatility Index, which consists of the 200 least volatile stocks of the S&P Emerging Plus LargeMidCap Index over the trailing 12 months.
EELV has $821 million in assets under management and has taken in $27 million in net flows over the past month.
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