Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.

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• Over the past six months, shares of IVZ have declined 6.4% against the industry‘s upside of 11.3%.
• (This article was originally published Thursday.) –New ETF focused on stock yields and volatility seen as novel approach –Some advisers aren’t sure if such a fund can do both jobs well –Higher dividends, lower volatilit…

Over the past six months, shares of IVZ have declined 6.4% against the industry‘s upside of 11.3%. Further, Invesco maintains a solid foothold in Europe, Canada and the Asia-Pacific regions. As of Jun 30, 2023, the company’s client AUM outside the United States constituted nearly 28% of total AUM.

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. When you consider its performance, diversification within the tech sector, and low expense ratio, the Fidelity MSCI Information Technology ETF just might be the best technology ETF out there. If you look at the chart below, the Fidelity trading stocks australia fund had a 10-year annualized return of about 17.5% as of Sept. 20. That’s roughly on par with some of the other funds listed in the chart, but it specifically beats the Invesco QQQ’s return of 16.0% over that same period. It also outperforms the QQQ looking back at their one-year, three-year, and five-year returns.

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The Fund seeks investment results that generally correspond to the price and yield of the S&P 500 Low Volatility High Dividend Index. The Fund generally will invest investment opportunities at least 90% of its total assets in securities that comprise the Underlying Index. Standard & Poor’s compiles, maintains and calculates the Underlying Index.

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment. The content and investment strategies discussed may not be suitable for and/or available to all investors. By checking the box and clicking continue, I confirm that I am an US Institutional Investor.

Let’s check the company’s financials to understand the risks and rewards. In this current backdrop, when the finance sector is facing uncertain macroeconomic conditions, investors should watch solid dividend-yielding stocks. Today, we are discussing one such stock, Invesco (IVZ Quick QuoteIVZ – Free Report) . You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.

We project passive AUM and alternate asset class AUM balance to witness a CAGR of 9.3% and 6.9%, respectively, by 2025. Invesco has been undertaking initiatives to improve operating efficiency. Though its total operating expenses increased marginally in the first half of 2023, the metric recorded a negative compound annual growth rate (CAGR) of 4.8% over the last three years ended 2022. We project adjusted total expenses to witness a modest rise this year despite undertaking several efficiency-improving measures. Apart from regular quarterly dividend payouts, IVZ has a share repurchase program in place. In July 2016, the company’s board approved the share repurchase authorization.

During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. The Invesco QQQ Trust (QQQ 0.07%) is one of the most popular exchange-traded funds (ETFs) on the market with just under $200 billion in assets under management.

• Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract.
• Standard & Poor’s compiles, maintains and calculates the Underlying Index.
• If you look at the chart below, the Fidelity fund had a 10-year annualized return of about 17.5% as of Sept. 20.
• The Fidelity MSCI Information Technology ETF does not have as long of a track record as the QQQ or some of the other leading technology ETFs in its class from Vanguard, State Street, and iShares (which is owned by BlackRock).
• Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole.

Acquisitions of U.K.-based advisor, Intelliflo, along with Europe-based Source, will likely help the company generate further momentum from business in those regions. The company’s AUM witnessed a CAGR of 2.2% over the last three years ended 2022, with the momentum continuing in the first half of 2023. The acquisition of OppenheimerFunds in 2019 primarily resulted in a significant rise in its AUM balance. Invesco is also taking advantage of the increasing demand for passive products and alternative asset classes, which were 33.9% and 11.8% of total AUM, respectively, as of Jun 30, 2023.

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023.

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This has lagged the Finance sector’s loss of 1.79% and the S&P 500’s loss of 2.84% in that time. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. The Fund’s return may not match the return of the Underlying Index for a number of reasons. A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

Index constituents are selected by the index committee using a series of rules as guidelines. But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market. Institutional includes defined contribution and defined benefit plans (corporate, public, Taft-Hartley), foundations and endowments, insurers, corporate cash managers, forex volatility indicator consultants, and trust administrators/custodians. This portion of the Invesco website is specifically prepared for institutional investors in the US. It also has diversification within the sector and largely tracks the MSCI USA IMI Information Technology 25/50 Index. This modified market cap-weighted index pulls from the entire investable market and includes large-, mid-, and small-cap technology stocks with certain screens to limit the weighting of mega-cap companies.

Industry Products

Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole.

With the Santa Claus rally, high-beta and high-momentum ETFs are expected to outperform in the seven-day period and are intriguing choices for a short spell. The content featured on this site from Invesco’s Global Thought Leaders, is intended for educational and informational purposes only, and is not an offer of any product or service. If you are interested in obtaining more information, please select a region to be directed to your local jurisdiction’s website. Read Invesco’s 2022 Corporate Responsibility Report to see how we foster diversity and inclusion, focus on ESG investments, and ensure sustainable operations. We have reported preliminary month-end AUM of $1,538.2 billion, an increase of 3.4% versus previous month-end.

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The other advantage for the Fidelity MSCI Information Technology ETF is its low cost. This ETF beats all competitors on fees with a low expense ratio of 0.08%. That is cheaper than even the Vanguard Information Technology ETF and the Technology Select Sector SPDR ETF, which both have an expense ratio of 0.10%. The Fund’s use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility. An issuer’s ability to prepay principal prior to maturity can limit the Fund’s potential gains. Prepayments may require the Fund to replace the loan or debt security with a lower yielding security, adversely affecting the Fund’s yield.