Invesco S&P SmallCap Low Volatility ETF provides direct exposure to the least volatile stocks within the S&P SmallCap 600 Index. However, its simplistic approach to measuring volatility, along with a lack of sector constraints, introduces concentration and correlation risks to the portfolio. These vulnerabilities can undermine the fund's low-volatility objective. The fund receives a Below Average Process Pillar rating.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable XSLV’s performance objective and investment process is for both security selection and portfolio construction.
