Nick Kalivas, Head of Factor and Core Equity Product Strategy and John Q. Frank, Head of ETF Specialists at Invesco discuss factor-based strategies to help advisors navigate today’s challenging market environment.
A factor-based investment approach seeks specific attributes or drivers of return and has the potential to achieve more precise and diversified investment exposures, explains Kalivas. Invesco’s suite of factor and multi-factor ETFs give advisors the building blocks to effectively position portfolios for a number of market environments or client goals. Style factors include size, value, dividend yield, volatility quality, and momentum.
For example, the Invesco S&P 500® Equal Weight ETF (RSP), offers equal-weighted exposure to the S&P 500 and helps eliminate concentration risk, while delivering the potential of higher long-term returns. While the biggest companies in the S&P 500 have driven much of the market growth over the last decades, today’s top 10 companies make up roughly 30% of the S&P 500’s market cap. During times of rising rates, inflation and volatile market conditions, an equal weighted approach can deliver diversification and risk mitigation.
To learn more, register and watch Invesco’s webcast: Innovative factor strategies for today’s challenges.
Rising interest rates, volatile markets, inflation and macroeconomic events influencing the investment landscape are top-of-mind challenges for many advisors today. Luckily, there are certain factor strategies advisors can use to navigate these challenges in pursuit of their clients’ investing goals.
Join Invesco’s experts for a discussion on:
- Challenges we hear advisors are most concerned about today
- Ways to navigate these challenges leveraging the power of factor strategies
- How to implement these types of strategies in a portfolio