Invesco expanded its line of ETFs with a new suite of “Strategic” multi-factor investments to help investors hone in on the quality and size factors.
Invesco rolled out five new ETFs in its Strategic suite, including:
- Invesco Strategic US ETF (NasdaqGM: IUS) has a 0.19%
- Invesco Strategic US Small Company ETF (NasdaqGM: IUSS) has a 0.23%
- Invesco Strategic Developed ex-US ETF (NasdaqGM: ISDX) has a 0.23%
- Invesco Strategic Developed ex-US Small Company ETF (NasdaqGM: ISDS) has a 0.35%
- Invesco Strategic Emerging Markets ETF (NasdaqGM: ISEM) has a 0.35%
The underlying indices assign a business-size score for each eligible equity security based on the equally-weighted average of sales, operating cash flow, total return of capital (dividends and share repurchases) and book value over the prior five years or life of the security, according to the funds’ prospectus.
The underlying securities are then assigned a quality score based on the equally-weighted average of two quality factors, efficiency calculated as the ratio of sales-to-assets in the prior year and growth calculated as the percentage change in the ratio of sales-to-assets over the prior five years.
Related: There are Opportunities Building in Emerging Markets
Companies within IUS, ISDX and ISEM’s in the top 90% by Business-Size Score are eligible for inclusion in the Underlying Index and, of those, the 80% with the highest Quality Scores are included in the Underlying Index.
On the other hand, due to their small-cap focus, companies in the IUSS and ISDS portfolios ranked below 90% by Business-Size Score are eligible for inclusion in the Underlying Index and, of those, the 80% with the highest Quality Scores are included in the Underlying Index.
For more information on new fund products, visit our new ETFs category.