Today Invesco rolled out three ETFs tracking smart beta indexes that incorporate the quality, value and momentum factors.
The new funds track indexes derived from the S&P 500, the S&P Midcap 400 and the S&P SmallCap 600. The ETFs and their expense ratios are as follows:
- Invesco S&P 500 QVM Multi-Factor ETF (QVML), 0.11%
- Invesco S&P MidCap 400 QVM Multi-Factor ETF (QVMM), 0.15%
- Invesco SmallCap 600 QVM Multi-Factor ETF (QVMS), 0.15%
All three funds list on the NYSE Arca.
This is an approach that makes fairly mild tilts to favored factors. Securities within the parent index are scored based on their exposures to the three targeted factors to create a multifactor score.
From there, the methodology selects the top 90% of securities for inclusion based on those scores. The final portfolio of each ETF is weighted by float-adjusted market capitalization.
Invesco has 230 existing ETFs, and many of them offer exposure to the quality, value and momentum factors, though not quite in this combination. The firm has $355 billion in assets under management.
Contact Heather Bell at [email protected]