What does Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF do?
Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF (NYSEARCA:XRLV) operates as an investment fund focusing on delivering exposure to U.S. equities that exhibit lower volatility yet are less sensitive to interest rate changes. This ETF aims to provide investors with a more stable investment avenue, carefully selecting stocks from the S&P 500 Index that meet its specific criteria for low volatility and reduced interest rate sensitivity. The objective is to mitigate the impact of market fluctuations and interest rate movements on the portfolio, seeking to offer more consistent returns. XRLV's projects involve continuous monitoring and rebalancing of its holdings to align with its investment strategy, ensuring that it remains responsive to changing market conditions.
Company Snapshot
Is Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF a public or private company?
Ownership
Public
How many people does Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF employ?
Employees
5,024
What sector is Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF in?
Sector
ETF
Where is the head office for Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF?
Head Office
Atlanta, United States
What year was Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF founded?
Year Founded
2015
What does Invesco S&P 500® ex-Rate Sensitive Low Volatility ETF specialise in?
Targets Low Volatility and Reduced Interest Rate Sensitivity: XRLV tracks an index that focuses on two objectives: (a) selecting companies from the S&P 500® with historically lower volatility characteristics and (b) excluding the 100 S&P 500® companies that have shown a tendency to perform poorly in rising interest rate environments. This aims to offer a portfolio with potentially less price fluctuation and reduced impact from rising interest rates.
Exposure to Diversified U.S. Large-Caps Ex-Rate Sensitive Stocks: By excluding interest rate-sensitive companies and focusing on low volatility, XRLV offers exposure to a basket of U.S. large-cap stocks that are generally less volatile and may be less affected by rising interest rates compared to the broader S&P 500®.
Potential for Capital Appreciation: The primary objective of XRLV is to achieve capital appreciation for investors through potential price increases of the underlying low-volatility, interest rate-less-sensitive U.S. large-cap stocks in the portfolio.
Passive Management: XRLV passively tracks the S&P 500® Low Volatility Rate Response Index. This means the specific holdings and weightings within the ETF are determined by the index methodology, not by an active manager.
Inverse Volatility Weighting: The holdings within the S&P 500® Low Volatility Rate Response Index are weighted inversely to their volatility. In simpler terms, stocks with lower historical volatility receive a higher weighting in the index, potentially amplifying the low-volatility characteristics of XRLV.
Exchange-Traded Fund: XRLV is listed on the NYSE Arca exchange under the ticker symbol XRLV. This allows investors to easily buy and sell shares of the ETF like any stock, offering a potentially cost-effective way to gain exposure to a portfolio of U.S. large-cap stocks with lower volatility and reduced interest rate sensitivity.