Invesco S&P MidCap Value with Momentum ETF (XMVM) Fund Overview

Invesco S&P MidCap Value with Momentum ETF (XMVM) Financial Services Profile

Invesco S&P MidCap Value with Momentum ETF (XMVM) offers exposure to mid-cap U.S. equities demonstrating value and momentum characteristics, tracking the S&P MidCap 400 High Momentum Value Index, and providing investors with a targeted investment strategy within the financial services sector.

What Is the Investment Thesis for XMVM?

XMVM presents a targeted investment opportunity for those seeking exposure to mid-cap U.S. equities with value and momentum characteristics. With a market cap of $0.42 billion and a beta of 1.07, the fund offers a focused approach within the broader mid-cap market. The fund's strategy of tracking the S&P MidCap 400 High Momentum Value Index, which selects stocks based on value and momentum scores, could lead to outperformance during specific market cycles. The semi-annual rebalancing ensures the portfolio remains aligned with its investment mandate. However, the absence of a dividend yield may deter income-focused investors. The fund's performance is subject to the risks associated with mid-cap equities and the effectiveness of the value and momentum factors.

Based on FMP financials and quantitative analysis

XMVM Key Highlights

Market Cap of $0.42 billion indicates a mid-sized ETF with moderate liquidity.

• Beta of 1.07 suggests the fund's price is slightly more volatile than the overall market.
• The fund invests at least 90% of its assets in securities comprising the S&P MidCap 400 High Momentum Value Index.
• The Index is composed of 80 securities from the S&P MidCap 400 Index, selected for high value and momentum scores.
• Semi-annual rebalancing and reconstitution occur in June and December to maintain index alignment.

Who Are XMVM's Competitors?

XMVM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are XMVM's Key Strengths?

Exposure to mid-cap stocks with value and momentum characteristics.

• Tracks a well-known and recognized index (S&P MidCap 400 High Momentum Value Index).
• Competitive expense ratio.
• High liquidity.

What Are XMVM's Weaknesses?

Absence of dividend yield may deter income-focused investors.

• Performance is subject to the risks associated with mid-cap equities.
• Vulnerable to market fluctuations and economic cycles.
• Factor-based strategies may underperform during certain market conditions.

What Are the Key Risks for XMVM?

Underperformance of value and momentum factors during specific market cycles.

• Market volatility and economic downturns impacting mid-cap equities.
• Competition from other ETFs offering similar investment strategies.
• Changes in the composition of the S&P MidCap 400 High Momentum Value Index.
• Regulatory changes impacting the ETF industry and investment strategies.

What Are XMVM's Competitive Advantages?

• Index Tracking: XMVM benefits from tracking a well-established and recognized index (S&P MidCap 400 High Momentum Value Index), providing investors with a transparent and rules-based investment strategy.
• Brand Recognition: Invesco is a well-known and respected asset manager, which enhances investor confidence in XMVM.
• Low Expense Ratio: XMVM's expense ratio is competitive compared to other ETFs in the same category, making it a noteworthy option for cost-conscious investors.
• Liquidity: As an ETF, XMVM offers high liquidity, allowing investors to easily buy and sell shares on the open market.

What Does XMVM Do?

The Invesco S&P MidCap Value with Momentum ETF (XMVM) is designed to mirror the performance of the S&P MidCap 400 High Momentum Value Index. Launched with the aim of providing investors with a focused approach to mid-cap investing, the fund strategically invests in securities within the S&P MidCap 400 Index that exhibit both high value and strong momentum scores. The fund operates under the principle of investing at least 90% of its total assets in the component securities of its benchmark index. The S&P MidCap 400 High Momentum Value Index itself is constructed by selecting 80 stocks from the broader S&P MidCap 400 Index. These stocks are chosen based on a dual-factor methodology, prioritizing companies with the highest 'value scores' and 'momentum scores'. This approach seeks to capture the potential upside of undervalued companies while also capitalizing on prevailing market trends. The ETF's investment strategy is passively managed, meaning it aims to replicate the index's composition and performance rather than actively selecting individual stocks. The fund undergoes semi-annual rebalancing and reconstitution, occurring on the third Friday of June and December. This process ensures that the ETF's holdings remain aligned with the index's criteria, reflecting changes in the value and momentum characteristics of the underlying mid-cap stocks. By providing targeted exposure to mid-cap value and momentum stocks, XMVM serves as a tool for investors seeking to enhance portfolio diversification and potentially achieve long-term capital appreciation.

What Products and Services Does XMVM Offer?

• Tracks the performance of the S&P MidCap 400 High Momentum Value Index.
• Invests primarily in mid-cap U.S. equities.
• Selects stocks based on value and momentum scores.
• Provides exposure to undervalued companies with strong market trends.
• Offers a targeted investment strategy within the mid-cap market.
• Rebalances and reconstitutes its portfolio semi-annually.
• Aims to replicate the index's composition and performance.

How Does XMVM Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• AUM growth is driven by investor inflows and market appreciation of underlying holdings.
• Expenses include operational costs, index licensing fees, and marketing expenses.
• Profitability depends on maintaining a competitive expense ratio and attracting investor capital.

What Industry Does XMVM Operate In?

The asset management industry is characterized by a diverse range of investment vehicles, including ETFs like XMVM, mutual funds, and hedge funds. The industry is influenced by macroeconomic trends, investor sentiment, and regulatory changes. ETFs have gained popularity due to their transparency, liquidity, and low cost. XMVM operates within the value and momentum factor-based investing segment, competing with other ETFs offering similar strategies. The fund's success depends on its ability to effectively track its benchmark index and attract investors seeking exposure to mid-cap value and momentum stocks.

Who Are XMVM's Key Customers?

• Retail investors seeking exposure to mid-cap value and momentum stocks.
• Financial advisors using ETFs for portfolio construction and asset allocation.
• Institutional investors seeking targeted exposure to specific market factors.
• Pension funds and endowments looking for diversified investment strategies.

XMVM Financials

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XMVM Analyst Consensus

XMVM MoonshotScore

Common Questions About XMVM (Financials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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