What does Invesco S&P 500® Enhanced Value ETF do?

Invesco S&P 500® Enhanced Value ETF (NYSE:SPVU) focuses on identifying U.S. stocks within the S&P 500 Index that appear undervalued relative to their fundamental value, aiming to offer investors enhanced exposure to value stocks. The fund employs a methodology that assesses stocks based on three value factors: the ratios of book value, earnings, and sales to price. SPVU aims to provide a practical option for investors seeking to integrate value-based investments into their portfolios, leveraging the potential for long-term capital appreciation by investing in companies priced below their intrinsic value but with strong fundamentals. The objective is to outperform traditional value indexes through a rigorous, research-driven selection process, while maintaining the broad diversification inherent in tracking a large segment of the U.S. equity market.
Invesco S&P 500® Enhanced Value ETF company media

Company Snapshot

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Ownership

Public
people

Employees

5,024
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Sector

ETF
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Head Office

Atlanta, United States
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Year Founded

2015

What does Invesco S&P 500® Enhanced Value ETF specialise in?

/Passive Investment /Value Stocks /S&P 500 /Asset Management /Equity Fund /Index Tracking

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

Overview of Invesco S&P 500® Enhanced Value ETF offerings
Tracks Enhanced Value Index: SPVU tracks the S&P 500 Enhanced Value Index, which selects stocks from the S&P 500 with the highest value scores based on metrics like book-to-price ratio, earnings-to-price ratio, and sales-to-price ratio.
Focuses on Value Investing: By targeting companies with high value scores, SPVU aims to invest in stocks that are potentially undervalued by the market.
Weighted by Market Cap and Value Score: Holdings in SPVU are weighted by a combination of their market capitalization and their value score. This means larger companies with strong value metrics receive a bigger allocation.
Sector Bias: Due to its value focus, SPVU may have a higher allocation to certain sectors like financials and energy, compared to the overall S&P 500 Index.
Potential for Higher Returns: Value investing can potentially lead to higher returns than the broader market over the long term, but it also carries greater risk.
Low Expense Ratio: SPVU has a relatively low expense ratio compared to some actively managed funds. As of May 13, 2024, the expense ratio is not available on Invesco's website but can be found on other financial websites.