Invesco Launches New Quality Value & Momentum Multi-factor ETF Suite

New S&P Index tracking ETFs have already received an investment of $1 billion

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Jul 12, 2021, 08:00 ET

ATLANTA, July 12, 2021 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, today announced the launch of a new multi-factor ETF suite tracking the S&P Quality Value & Momentum Top 90% Indices. Invesco and S&P Dow Jones Indices have been leaders in factor investing since 2003 and together have a suite of 66 U.S. listed products. The newly launched suite has already generated $1 billion in inflows from Municipal Employees Retirement System of Michigan (MERS) and other investors.

The Invesco S&P QVM ETFs offer a multi-factor tilt on the existing S&P 500 Index, S&P MidCap 400 Index and S&P SmallCap 600 Index benchmarks, trimming down the existing universe through a factor-screen to provide targeted exposure to US stocks with the highest quality, value and momentum multi-factor score. The names and the tickers are as follows:

Invesco S&P 500 QVM Multi-factor ETF (QVML)
Invesco S&P MidCap 400 QVM Multi-factor ETF (QVMM)
Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS)

"Invesco helped to pioneer factor ETFs in partnership with the trusted methodology of S&P Dow Jones Indices over a decade ago. Together we continue to seek to provide investors with precise access to better return patterns at a lower cost,¹" said John Hoffman, Head of Americas, ETFs & Indexed Strategies at Invesco. "We are excited to collaborate with both S&P Dow Jones indices to address the needs of clients such as MERS by expanding our partnership on these new QVM multi-factor ETFs."

"Our allocation to the new Invesco S&P QVM ETF Suite gives us flexible, cost efficient¹, and liquid access² to Quality Value Momentum multifactor exposure across market cap tiers," says Jeb Burns, Chief Investment Officer of MERS. "We believe the S&P Dow Jones Indices multi-factor methodology enhances our core large, mid, and small-cap exposure, better positioning our portfolio to align with our views on factor allocation."

Please note, MERS experience may not be representative of other customers, and is not a guarantee of future performance or success.

While the research, data and analytics that inspired rewarded equity factor investing was first established in the 1970s, Invesco, through its collaboration with S&P Dow Jones indices, initiated the transparent³ and efficient delivery of rewarded factors though the ETF framework. Together, the two firms were able to create products based on solid research and factor experience to help investors address their increasingly sophisticated investment needs.

"The confidence from MERS in the new Invesco S&P QVM ETF Suite is reflective of not only the growing ETF usage among institutional investors, but also of pension funds' increasing willingness to consider the lower-cost passive instruments that best meet mandates," said Hoffman. "We believe this will continue to be a trend among forward-thinking institutions who see value in rewarded factors."

The launch of these new ETFs aligns with the findings of the Invesco Global Factor Investing Study 2020 which tracks the investing sentiment of over 230 factor investors worldwide. The most recent survey found that 81% of surveyed institutional investors and 73% of responding advisors searching for more tactical tools were increasing their allocation to multi-factor strategies. A majority of both institutional and wholesale investors also used ETFs as the primary vehicle for gaining multi-factor exposure.

"With increasing global interest in factor ETFs, the new S&P Quality, Value & Momentum Top 90% Multi-factor Indices are a natural evolution towards making multi-factor strategies broadly appealing," said Reid Steadman, Head of ESG & Innovation Indices at S&P Dow Jones Indices. "We're excited to work with Invesco on this unique take on factor investing."

The S&P Quality, Value & Momentum Top 90% Multi-factor Indices measure the performance of stocks after excluding those with the lowest quality, value, and momentum multi-factor score. Index constituents are weighted by float-adjusted market capitalization, subject to certain constraints defined in the index methodology. A 20% buffer is applied to stocks already in the index in order to reduce portfolio turnover. The Indices rebalance quarterly, effective after the close on the third Friday of March, June, September, and December, with a reference date of the last business day of February, May, August, and November, respectively. Weights calculated as a result of the reference date are implemented in the indices using closing prices as of the Wednesday prior to the second Friday of March, June, September, and December.

About Invesco Ltd.
Invesco Ltd. (TickerNYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. Invesco managed US $1.5 trillion in assets on behalf of clients worldwide as of May 31, 2021. For more information, visit www.invesco.com/corporate. Follow Invesco Ltd on LinkedIn: https://www.linkedin.com/company/invesco-ltd.

About S&P Dow Jones S&P Indices:
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit https://www.spglobal.com/spdji/en/.

¹Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.

² Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, 150,000 or 200,000 Shares.

³Most ETFs disclose their holdings daily.

About Risk

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

The Underlying Index, and thus the Fund, seeks to achieve specific factor exposures to securities in the Parent Index, as identified in the Fund's principal investment strategies. There can be no assurance that targeting exposure to such factors will enhance the Fund's performance over time and targeting exposure to certain factors may detract from performance in some market environments. There is no guarantee the Underlying Index methodology will achieve the specific factor exposures identified.

Companies that issue quality stocks may experience lower than expected returns or may experience negative growth, as well as increased leverage, resulting in lower than expected or negative returns to Fund shareholders.

A value style of investing is subject to the risk that the valuations never improve or that the returns will trail other styles of investing or the overall stock markets.

Momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole or returns on securities that have previously exhibited price momentum are less than returns on other styles of investing.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

The S&P Quality, Value & Momentum Top 90% Multi-factor Indices are products of S&P Dow Jones Indices LLC ("S&P DJI"), a division of S&P Global ("S&P"), or its affiliates, and have been licensed for use by Invesco. S&P® is a registered trademark of Standard & Poor's Financial Services LLC, a division of S&P; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Invesco. The Invesco QVM Multi-factor ETFs are not sponsored, endorsed, sold, or promoted by S&P DJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the S&P Quality, Value & Momentum Top 90% Multi-factor Indices.

Invesco is not affiliated with Municipal Employees Retirement System of Michigan (MERS) or S&P Dow Jones S&P Indices.

Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisors for a prospectus/summary prospectus or visit invesco.com/fundprospectus.

Contact: Stephanie Diiorio, [email protected], 212.278.9037

SOURCE Invesco Ltd.