The small size factor has outperformed in 2022, maintaining strength through November.
The weighted average capitalization of most factor indexes is below that of the S&P 500. Other things equal, therefore, most factor indices will benefit from a tailwind when smaller companies outperform, according to S&P Dow Jones Indexes.
In November, only six factor indexes lagged the S&P 500’s 5.6% advance, while 11 outperformed. Notably, of the 8 largest-cap S&P 500 factor indexes, only three outperformed and five lagged; of the 9 smallest-cap S&P 500 factors indexes, all but one outperformed, according to S&P Dow Jones Indices.
Invesco offers six ETFs based on S&P 500 factor-based equity indexes that provide exposure to the small size factor.
1. Invesco S&P 500 High Beta ETF (SPHB)
The high beta factor was the top performer during in November. SPHB’s underlying index increased 9.5% during the month, bringing its quarter to date gain to 19.1%. The index is down -12.9% year to date.
2. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
SPHD’s underlying index gained 7.1% in November. The fund has advanced 17.7% quarter to date and boasts the best year to date gains of all S&P 500 factor indexes, up 4.8%.
3. Invesco S&P 500 Enhanced Value ETF (SPVU)
SPVU’s underlying index gained 6.7% in November. The index is up 21.4% quarter to date and 0.9% year to date.
4. Invesco S&P 500 Equal Weight ETF (RSP).
RSP’s underlying index also advanced 6.7% last month. Quarter the date, the index is up 17.2%. The index has declined -7.1% year to date.
5. Invesco S&P 500 Low Volatility ETF (SPLV)
SPLV’s underlying index increased 5.8% in November, bringing its quarter to date advances to 13.2%. The index is down -2.9% year to date.
6. Invesco S&P 500 Pure Value ETF (RPV)
While RPV’s underlying index was the only small size factor index to underperform the S&P 500, gaining 5.3%, the index is the top performer year to date, up 4.9% as of the end of November.
For more news, information, and analysis, visit the Innovative ETFs Channel.