Invesco Ltd IVZ

Invesco sees continued growth in Smart Beta adoption, anticipates the industry's Smart Beta Assets Under Management will reach $1 trillion this year

ATLANTA, April 25, 2023 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced today that it will celebrate the anniversary of the launch of the first smart beta ETF, Invesco S&P 500^® Equal Weight ETF (RSP). Invesco's ETF line-up was the first to primarily consist of Smart Beta ETFs and the potential benefits of Smart Beta strategies continue to drive assets to the category. At the current growth rate, Invesco expects the ETF industry's Smart Beta assets under management (AUM) to hit a milestone $1 trillion by the end of 2023¹.

"In the 20 years since the Invesco S&P 500 Equal Weight ETF was launched, Smart Beta ETFs have played an instrumental role in helping investors to meet their financial goals," said John Hoffman, Americas Head of Invesco ETFs and Indexed Strategies. "Investors continue to be drawn to the precision and convenience of Smart Beta ETFs, generating growth in the category at a rate of 26% over the last three years²."

When RSP launched in 2003, the ETF transformed how investors could access the S&P 500 Index. At the time, the term Smart Beta was intended as shorthand to concisely explain to investors the benefits of breaking the link between market capitalization and weight. RSP's equal weighting offers access to the performance of the smaller stocks in the large cap space, naturally tilting the ETF away from the largest names and prioritizing concentration risk reduction.

"Currently, the top ten companies in the S&P 500 Index represent more than 27% of the overall weight of the index³, causing investors to have relatively higher exposure to a small number of companies. Those same companies make up only 2.3% of RSP⁴, a shift in composition that has contributed to RSP outperforming the S&P 500 Index by 1.5% per annum since inception to December 2022.⁵" explains Hoffman.

Invesco believes that despite the 20 years of Smart Beta offering, there is still much room for Smart Beta growth and product development. The current market environment may accelerate the adoption of Smart Beta ETFs, creating a need for cost-competitive ways⁶ to access precise areas of the market through a flexible product structure. Invesco currently has the largest number of Smart Beta ETFs in the United States, including the highest number of Smart Beta ETFs (93) with at least a 10-year track record and 117 ETFs that in total have $100 billion in AUM⁷.

"Since its launch in January 2003, the S&P 500 Equal Weight Index has offered market participants an innovative way of measuring large cap U.S. companies. S&P DJI extends its heartfelt congratulations to Invesco on the 20th anniversary of their ETF based on our index. The index complements the S&P 500 and its equal weighting approach means the index tilts away from the largest companies in the S&P 500. In addition, the index has also typically been more value-oriented than its parent index. We are proud of developing pioneering benchmarks that provide a unique lens into various facets of the U.S. and global equities market," said Bruce Schachne, Chief Commercial Officer at S&P Dow Jones Indices.

Performance as of March 31, 2023

Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Fund performance reflects fee waivers, absent which performance data quoted would have been lower. As the result of a reorganization on April 6, 2018, the returns presented reflect performance of the Guggenheim predecessor fund. Invesco is not affiliated with Guggenheim. An investment cannot be made directly into an index. Index returns do not represent fund returns.

¹ Bloomberg as of March 31, 2023. There is no guarantee these views will come to pass.
² Bank of NY data March 31, 2022, through March 31, 2023
³ Bloomberg as of March 31, 2023
⁴ Bank of NY data as of March 31, 2023
⁵ Source: Bloomberg As of April 24, 2003 through December 31, 2022. Based on NAV
⁶ Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
⁷ Invesco ETF & Indexed Strategies data as of March 31, 2023

About Invesco Ltd.
Invesco Ltd. 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$1.4 trillion in assets on behalf of clients worldwide as of December 31, 2022. For more information, visit www.invesco.com/corporate.

Important Information:

Invesco Distributors, Inc. is not affiliated with S&P Dow Jones Indices.

The S&P 500 Equal Weight Index) is the equal-weight version of the widely-used S&P 500. An investment cannot be directly into an index.

The opinions expressed are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. There is no guarantee these views will come to pass.

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, both in active or passive vehicles. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.

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.

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 medium-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 500^® Index and the S&P 500 Equal Weight 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 Equal Weight 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.

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 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 is an indirect, wholly owned subsidiary of Invesco Ltd.

Contact: Stephanie Diiorio, stephanie.diiorio@invesco.com 212.278.9037

View original content to download multimedia:https://www.prnewswire.com/news-releases/first-smart-beta-etf-the-invesco-sp-500-equal-weight-etf-ticker-rsp-celebrates-its-20-year-anniversary-301806966.html

SOURCE Invesco Ltd.