Invesco S&P 500® Downside Hedged ETF company info

What does Invesco S&P 500® Downside Hedged ETF do?
Invesco S&P 500® Downside Hedged ETF (NYSE:PHDG) is an innovative investment option designed to offer investors protection against downside risk while still allowing participation in the potential upsides of the S&P 500 index. This ETF utilizes a dynamic strategy that combines equity with volatility derivatives, adjusting its exposure based on the perceived risk in the market environment. The primary objective is to deliver portfolio diversification benefits and minimize the impact of significant market decreases, without completely sacrificing growth opportunities. By strategically balancing its holdings in equities and VIX futures, Invesco S&P 500® Downside Hedged ETF aims to offer a more stable investment experience, even during turbulent times.
Invesco S&P 500® Downside Hedged ETF company media
Company Snapshot

Is Invesco S&P 500® Downside Hedged ETF a public or private company?

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Ownership
Public

How many people does Invesco S&P 500® Downside Hedged ETF employ?

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Employees
5,024

What sector is Invesco S&P 500® Downside Hedged ETF in?

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Sector
ETF

Where is the head office for Invesco S&P 500® Downside Hedged ETF?

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Head Office
Atlanta, United States

What year was Invesco S&P 500® Downside Hedged ETF founded?

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Year Founded
2012
What does Invesco S&P 500® Downside Hedged ETF specialise in?
/Risk Management /Equity Securities /Derivatives Exposure /S&P 500 Index /Investment Diversification /Hedge Strategy

What are the products and/or services of Invesco S&P 500® Downside Hedged ETF?

Overview of Invesco S&P 500® Downside Hedged ETF offerings
Targets S&P 500® Performance with Downside Protection: PHDG aims to track the returns of the S&P 500® Index, a benchmark for the performance of large-cap U.S. stocks. However, it also seeks to hedge against potential market downturns using derivative strategies.
Potential for Upside Participation: While aiming to hedge against significant declines, PHDG also offers the potential to capture some of the upside if the S&P 500® Index rises. However, the hedging strategy may limit the extent to which PHDG participates in strong market rallies.
Reduced Volatility: The hedging strategy in PHDG can potentially result in lower overall volatility compared to the S&P 500® Index, especially during market downturns. This may be attractive for investors seeking a smoother investment experience.
Cost of Protection: The hedging strategies employed by PHDG come at a cost. The expense ratio of PHDG will likely be higher than that of an S&P 500® tracking ETF without hedging, meaning a smaller portion of the fund's returns go to investors.
Transparency: The composition of the ETF's holdings may not be entirely transparent due to the use of derivatives for hedging. Investors may not have a complete picture of all the underlying assets the fund is exposed to.
Potential for Lower Long-Term Returns: Hedging strategies can sometimes dampen potential returns over very long investment horizons compared to an unhedged S&P 500® ETF. This is because hedging can limit participation in strong market upswings.