New ETFs offer opportunities for growth-in-cash-flow and
growth-in-dividends that align with the current macroeconomic
environment
ATLANTA, Dec. 6, 2023
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global provider
of exchange-traded funds (ETFs), today announced the launch of two
unique ETFs that target distinctive strategies not previously
available to investors. For the first time, investors will be able
access two strategies that align with the current market
environment; an ETF that targets companies with strong cash flow,
and an ETF focused on strong and forecasted high dividend
growth.
"Invesco has a track record of successfully launching
differentiated, first-to-market ETFs that can help our clients
navigate many market environments," says Nick Kalivas, Head of Factor and Core Equity
ETFs at Invesco. "Today's launch offers two ETFs that break new
ground with an innovative take on free cash flow and
forward-looking income that are a strong addition to Invesco's
industry leading line-up of smart beta strategies."
The new ETFs offer investors two very targeted and tightly
focused strategies:
- Invesco S&P High Dividend Growers ETF (DIVG)
- Invesco Nasdaq Free Cash Flow Achievers ETF (QOWZ)
The Invesco S&P High Dividend Growers ETF (DIVG)
focuses on the potential for dividend growth using an original
methodology. It provides exposure to companies in the S&P 500
that have both historically offered consistent (or growing)
dividends and the highest forecasted dividend yield
growth. DIVG will track the S&P 500 High Dividend Growth
Index and will be the first-in-market ETF to leverage S&P Dow
Jones Indices' (S&P DJI) dividend forecasting methodology. The
100 companies included in DIVG's underlying index will be weighted
by 12 month forecasted dividend yield, rather than backward-looking
dividend data. The forecast data used to calculate the index is
published by S&P Global Market Intelligence Inc., an
independent affiliate of S&P Dow Jones Indices.
"S&P DJI is pleased to expand its relationship with Invesco
by licensing the S&P 500 High Dividend Growth Index," said
Rupert Watts, Head of Factors and
Dividend Indices at S&P Dow Jones Indices. "This recently
launched index captures the pioneering spirit of S&P DJI by
using an independent Dividend Forecast Dataset sourced from S&P
Global Market Intelligence to incorporate a forward-looking
assessment into its index methodology."
The Invesco Nasdaq Free Cash Flow Achievers ETF (QOWZ)
will include companies with high levels of cash available, after
expenses and capital expenditure, also known as "free cash flow."
QOWZ tracks the Nasdaq US Free Cash Flow Achievers™ Index. Its
strategy provides investors access to 50 eligible U.S.-listed
companies based on the greatest number of years during the 11-year
period when a company had a year-over-year increase in positive
free cash flow, without prioritizing free cash flow yield. If
securities have the same number of years with a positive
year-over-year change in free cash flow, the trailing 3-year
compounded annual growth rate in free cash flow is used as a
tiebreaker. This unique combination of selection factors differs
from other yield-focused, value-oriented free cash flow-based
strategies currently available. Companies included in QOWZ have a
different profile than other available ETFs in this category.
"As an index provider, Nasdaq is continuously looking for
innovative ways to design unique, rules-based methodologies to
support product development and help investors gain exposure to
market trends," said Cameron Lilja,
Vice President and Global Head of Product and Operations at Nasdaq.
"We're excited to expand our longstanding partnership with Invesco
by utilizing free cash flow metrics to identify and track strong,
high-quality growth companies."
About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) is
a global independent investment management firm dedicated to
delivering an investment experience that helps people get more out
of life. Our distinctive investment teams deliver a comprehensive
range of active, passive and alternative investment capabilities.
With offices in more than 20 countries, Invesco managed
US$1.49 trillion in assets on behalf
of clients worldwide as of October 24,
2023. For more information, visit
www.invesco.com/corporate.
Important Information
Not a Deposit | Not FDIC
Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured
by any Federal Government Agency
Invesco Distributors, Inc. is not affiliated with S&P Dow
Jones Indices or Nasdaq Indexes. An investment cannot be directly
into an index.
The Nasdaq US Free Cash Flow Achievers Index is comprised of 50
members of the Nasdaq US Benchmark Index with the highest count of
positive year-over-year changes in free cash flow growth over the
past 11 years, excluding Financials and Real Estate Sectors.
Nasdaq® and Nasdaq US Free Cash Flow Achievers Index,
are trademarks of Nasdaq, Inc. (which with its affiliates is
referred to as the "Corporations") and are licensed for use by
Invesco Distributors Inc. The Product(s) have not been passed
on by the Corporations as to their legality or suitability.
The Product(s) are not issued, endorsed, sold, or promoted by the
Corporations. The Corporations make no warranties and bear
no liability with respect to the product(s).
The S&P 500 High Dividend Growth Index measures the
performance of the 100 companies with the highest forecasted
dividend yield growth within the S&P 500 that have followed a
managed-dividends policy of consistently increasing or maintaining
dividends for at least five consecutive years, weighted by
forecasted dividend yield.
The S&P 500® Index and the S&P 500 High
Dividend Growth Index (the "S&P Indices") are products of
S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and have
been licensed for use by Invesco Ltd.
S&P®,S&P 500®, US 500 and The 500 are
trademarks of Standard & Poor's Financial Services LLC
("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 SPDJI and sublicensed for certain purposes
by Invesco Ltd. The Invesco S&P High Dividend Growers ETF is
not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones,
S&P, or their respective affiliates, and none of such parties
make any representation regarding the advisability of investing in
such product nor do they have any liability for any errors,
omissions, or interruptions of the S&P Indices.
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 Funds
are subject to certain other risks. Please see the current
prospectus for more information regarding the risk associated with
an investment in the Funds.
Beta is a measure of risk representing how a security is
expected to respond to general market movements. Smart Beta
represents an alternative and selection index based methodology
that seeks to outperform a benchmark or reduce portfolio risk, or
both. Smart beta funds may underperform cap-weighted benchmarks and
increase portfolio risk.
DIVG
Securities that pay high dividends as group can fall out of
favor with the market, causing such companies to underperform
companies that do not pay high dividends. Also, changes in the
dividend policies of the companies in which the Fund invests and
the capital resources available for such companies' dividend
payments may adversely affect the Fund.
Investments focused in a particular industry are subject to
greater risk, and are more greatly impacted by market volatility,
than more diversified investments.
QOWZ
Free cash flow is the cash a company generates after accounting
for operating expenses and capital expenditures. While free cash
flow can be a useful metric for evaluating a company, there is not
guarantee that companies with high free cash flow yields will
continue to maintain high free cash flow yields in the future, or
that these companies will outperform companies with lower free cash
flow yields.
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 opinions expressed herein are based on current market
conditions and are subject to change without notice. These opinions
may differ from those of other Invesco investment
professionals.
This does not constitute a recommendation of any investment
strategy or product for a particular investor. Investors should
consult a financial professional before making any investment
decisions.
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, 80,000,
100,000 or 150,000 Shares.
Before investing, investors should carefully read the
prospectus/summary prospectus and carefully consider the investment
objectives, risks, charges and expenses. For this and more complete
information about the Fund call 800 983 0903 or visit invesco.com
for the prospectus/summary prospectus.
Invesco Distributors, Inc. is the US distributor for Invesco's
retail products and private placements, and Invesco Capital
Management LLC is the investment adviser for ETFs. Both entities
are indirect, wholly owned subsidiaries of Invesco Ltd.
Contact: Stephanie Diiorio, 212.278.9037,
stephanie.diiorio@invesco.com
NA3257537 12/23
View original content to download
multimedia:https://www.prnewswire.com/news-releases/invesco-adds-two-first-to-market-etfs-to-its-robust-suite-of-smart-beta-etfs-302006434.html
SOURCE Invesco Ltd.