Invesco Expands Dynamic Multi-Factor Suite with International Equities ETF

Rhea-AI Summary

Invesco Ltd. (NYSE: IVZ) has launched the Invesco International Developed Dynamic Multifactor ETF (IMFL), expanding its dynamic multifactor suite to include international equities. IMFL seeks to track the FTSE Developed ex US Invesco Dynamic Multifactor Index, adjusting factor holdings based on economic cycles. The ETF aims to provide access to large and mid-cap stocks from 24 developed markets outside the U.S. Invesco manages US$1.35 trillion in assets and emphasizes a robust investment experience for clients, leveraging advanced methodologies and frequent rebalancing.

Positive

• Launch of Invesco International Developed Dynamic Multifactor ETF (IMFL) enhances product offering.
• ETF tracks a sophisticated index that adapts to market conditions, potentially appealing to investors.
• Access to diversified international equities across 24 developed markets enhances investment options.

Negative

• ETFs, including IMFL, are subject to market volatility and risks associated with international investing.
• Investor returns may not match the underlying index, potentially affecting performance.

ATLANTA, Feb. 24, 2021 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, today announced the launch of the Invesco International Developed Dynamic Multifactor ETF (IMFL). The addition of IMFL broadens the firm's dynamic multifactor suite, which currently includes ETFs that access large-cap and small-cap US equities to include international equities. Invesco's dynamic multifactor ETFs adapt and evolve factor holdings as the market environment changes.

"Invesco has a strong track record of offering dynamic multi-factor ETFs that adapt and evolve factor holdings as the market environment changes," said Anna Paglia, Global Head of ETFs and Indexed Strategies at Invesco. "Clients will now have access to international equities across geographies through an easily accessible single suite of ETFs."

IMFL seeks to track the investment results of the FTSE Developed ex US Invesco Dynamic Multifactor Index¹, a rules-based index that re-weights securities to align rewarded factors according to economic cycles and overall market conditions. Factor exposures are targeted according to the four stages of the business cycle; recovery, expansion, slowdown and contraction. IMFL's underlying index is powered by a proprietary methodology for identifying economic and market sentiment indicators, which leverages intellectual capital of Invesco Investment Solutions in partnership with Invesco's indexing business. IMFL and its index are reconstituted and rebalanced as frequently as monthly.

The FTSE Developed ex US Index, the parent index of the FTSE Developed ex US Invesco Dynamic Multifactor Index, is comprised of large-capitalization (85%) and mid-capitalization (15%) stocks of companies located in 24 developed market countries around the world, excluding the United States.

Other ETFs included in the dynamic multifactor suite are Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) with a 5-star Morningstar Overall rating out of 1230 funds in the Large Blend Category and the Invesco Russell 2000 Dynamic Multifactor ETF (OMFS), with 5-star Morningstar Overall rating out of 630 funds in the Small Blend Category. Morningstar ratings are based on risk adjusted return as of Jan. 31, 2021^2. These funds also leverage the same intellectual capital of the Invesco Investment Solutions team.

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$1.35 trillion in assets on behalf of clients worldwide as of December 31, 2020.  For more information, visit www.invesco.com/corporate.

About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.  FTSE Russell is wholly owned by London Stock Exchange Group.  For more information, visit www.ftserussell.com.

¹ Index returns do not represent Fund returns. An investor cannot invest directly in an index.
² OMFL received 5 stars for the overall and three years, N/A stars for the five years and N/A stars for the 10 years. The fund was rated among 1230, 1230, N/A, N/A funds within the Morningstar Large Blend Category of the overall period, three, five and 10 years, respectively. OMFS received 5 stars for the overall and three years, N/A stars for the five years and N/A stars for the 10 years. The fund was rated among 630, 630, N/A, N/A funds within the Morningstar Large Blend Category of the overall period, three, five and 10 years, respectively. Morningstar ratings are as of Jan. 31, 2021,
Morningstar ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on the downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings for other share classes may differ due to different performance characteristics.
©2019 Morningstar, Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance cannot guarantee comparable future results.

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.

The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

The performance of an investment concentrated in issuers of a certain region or country, such as the Japan and the European Union, is expected to be closely tied to conditions within that region and to be more volatile than more geographically 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.

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.

The Fund is non-diversified and may experience greater volatility than a more diversified investment.

The Fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.

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.

FTSE International Limited. FTSE® is a trademark of the London Stock Exchange Group plc and its group undertakings and is used by FTSE under license. FTSE has been licensed for use in the Underlying Index by the Adviser. The Fund is not in any way sponsored, endorsed, sold or promoted by FTSE, Frank Russell Company, or the London Stock Exchange Group companies ("LSEG") (together the "Licensor Parties") and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Underlying Index, (ii) the figure at which the Underlying Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Underlying Index for the purpose to which it is being put in connection with the Fund. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Underlying Index to the Adviser or to its clients. The Underlying Index is calculated by FTSE or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Underlying Index or (b) under any obligation to advise any person of any error therein.

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, 25,000, 50,000, 75,000, 80,000, 100,000, 150,000 or 200,000 Shares.

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, stephanie.diiorio@invesco.com, 212.278.9037

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SOURCE Invesco Ltd.

FAQ

What is the Invesco International Developed Dynamic Multifactor ETF (IVZ)?

The Invesco International Developed Dynamic Multifactor ETF (IMFL) is a new ETF launched by Invesco to provide access to international equities.

How does the IMFL ETF adjust its holdings?

IMFL adapts its holdings based on economic cycles and market conditions, rebalancing as frequently as monthly.

What index does the Invesco IMFL ETF track?

It seeks to track the FTSE Developed ex US Invesco Dynamic Multifactor Index.

What is the asset management size of Invesco (IVZ)?

As of December 31, 2020, Invesco managed US$1.35 trillion in assets globally.

What are the risks associated with investing in the IMFL ETF?

Investing in ETFs like IMFL carries risks such as market volatility and potential mismatches between the fund's return and its underlying index.