Market optimism was abound during Monday’s trading session as ETF investors were awash in mostly green with the major indexes rallying off vaccine news. If the rally is real, than investors will want to get exposure to names like Pfizer and Moderna, which they can achieve with these five Invesco ETFs.
- Invesco S&P 500 Top 50 ETF (XLG ): seeks to track the investment results of the S&P 500® Top 50 Index. The index provider compiles, maintains and calculates the underlying index, which consists of the 50 largest members of the S&P 500 Index by float-adjusted market capitalization. The underlying index’s components are weighted by float-adjusted market capitalization.
- Invesco S&P 500 Downside Hedged ETF (PHDG ): seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income market returns. The fund uses a quantitative, rules based strategy to allocate its assets among components of the S&P 500 Dynamic VEQTOR Index in a combination of (i) equity securities contained in the S&P 500® Index and that are listed on a U.S. securities exchange, (ii) Chicago Board Options Exchange Volatility Index related instruments, such as listed VIX Index futures contracts that reflect exposure to the S&P 500® VIX Short Term Futures Index, and (iii) money market instruments, cash and cash equivalents.
- Invesco S&P 500 Equal Weight Health Care ETF (RYH ): seeks to track the investment results of the S&P 500® Equal Weight Health Care Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of all of the components of the S&P 500 Health Care Index, an index that contains the common stocks of all companies included in the S&P 500 Index that are classified as members of the health care sector.
- Invesco PureBeta MSCI USA ETF (PBUS ): seeks to track the investment results (before fees and expenses) of the MSCI USA Index. The index is designed to measure the performance of the large- and mid-capitalization segments of the U.S. equity market.
- Invesco Conservative Multi-Asset Allocation ETF (PSMC ): seeks total return consistent with a lower level of risk relative to the broad stock market. The fund seeks to achieve its investment objective by allocating its assets using a conservative investment style that seeks to maximize the benefits of diversification, which focuses on investing a greater portion of fund assets in Fixed Income ETFs, but also provides some exposure to underlying ETFs that invest primarily in equity ETFs. Specifically, the fund’s target allocation is to invest approximately 5%-35% of its total assets in equity ETFs and approximately 65%-95% of its total assets in fixed income ETFs.
With the Dow Jones Industrial Average jumping 800 points, ETF investors certainly have seen this before—a jump on optimism followed by a later sell-off. Some market analysts thus far sense that this recent rally has real merit aside from the perfunctory post-election rally.
“I think that the rally is justifiable. I think we’re going to start a new discussion, and the discussion is what’s America going to look like post Covid,” said CNBC’s “Mad Money” host Jim Cramer. “If you think about where we were last week, where we felt that there was very little chance to be able to stop this thing, now suddenly we have hope.”
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