Invesco Bloomberg MVP Multi-factor ETF

BMVP

Market cap $103M

The Bloomberg MVP index combines momentum, volatility, valuation, and profitability factors to identify outperforming stocks and offers a robust quantitative screening tool for investors. Large-cap tech stocks command premium valuations due to sustained profitability and growth, driven by innovation and investments in private markets, unlike the rest of the S&P 500.

The new year is poised for a resurgence in tech IPOs, as lower interest rates and an investor shift to small- and mid-cap companies combine to create a more welcoming market for debuts. The current environment presents the most favorable conditions for the recovery of IPOs in the past three years. The S&P 400 Midcap Index and the S&P 600 Index have outperformed the S&P 500 Index since the US election Nov. 5.

Invesco Bloomberg MVP Multi-factor ETF uses an equal-weight strategy based on momentum, value, volatility, and profitability. BMVP is well-diversified across sectors and holdings, with a focus on industrials and financials, and has quite good valuation metrics. The Fund has underperformed the S&P 500 and other multifactor ETFs over the past 7 years.