U.S. Markets closed

Invesco Pares Fees on 3 Smart Beta ETFs

This article was originally published on ETFTrends.com.

Invesco Ltd. (IVZ), the fourth-largest U.S. issuer of exchange traded funds, said it is lowering fees on three of its smart beta ETFs.

“Invesco seeks to deliver an experience that helps investors get more out of life. Many elements influence an investor's experience, such as performance, alignment with desired outcomes and value for cost. By offering a competitive set of active, passive and alternative capabilities, the firm is well positioned to help clients achieve their desired investment objectives,” according to a statement.

Invesco lowered the annual fee on the Invesco Dow Jones Industrial Average Dividend ETF (DJD) to 0.07% from 0.30%. DJD weighs the 30 Dow stocks by yield. That fund tracks the Dow Jones Industrial Average Yield Weighted Index.

More Fee Cuts

The Invesco S&P 500 High Quality Portfolio (SPHQ) saw its annual fee lowered from 0.38% to 0.15%.

The ETF’s quality tilt comes by way of emphasizing companies’ long-term earnings growth dividend-paying potential. The underlying index focuses on companies with the highest quality as determined by fundamental measures, including return on equity, accruals ratio and financial leverage ratio.

The Invesco S&P 500 Value With Momentum Portfolio (SPVM) had its annual fee lowered from 0.30% to 0.15%.

SPVM follows the S&P 500 High Momentum Value Index, which “tracks the performance of stocks in the S&P 500 Index that have the highest value and momentum score. Constituents are selected through a two-step process: first, the 200 stocks with the highest value scores; second, 100 securities with the highest positive momentum scores,” according to the issuer.

“Invesco prices their products at levels they believe are appropriate for the value they deliver to clients and that are competitive in the marketplace. They thoughtfully make adjustments when there is an opportunity to better meet client needs, grow the business, increase market share or defend revenue,” said Invesco in the statement.

For more on smart beta ETFs, visit our Smart Beta Channel.