Share-split context: A forward split was recorded on Jul 17, 2023 with coefficient 10. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

Understanding the INVESCO S&P 500 TOP 50 ETF (XLG)

The INVESCO S&P 500 TOP 50 ETF (ticker: XLG) is designed to focus on the largest companies within the S&P 500 index. This ETF provides exposure to a concentrated group of major corporations.

What this ETF is trying to do

XLG aims to track the performance of the top 50 largest companies in the S&P 500. Instead of owning hundreds of different stocks, this fund focuses its holdings on a smaller group of massive companies.

Top Holdings

Based on the most recent data, the fund's largest holdings include:

• NVIDIA CORP (12.90%)

• APPLE INC (11.22%)

• MICROSOFT CORP (9.09%)

• AMAZON.COM INC (6.13%)

• ALPHABET INC CLASS A (4.80%)

• BROADCOM INC (4.23%)

• ALPHABET INC CLASS C (3.82%)

• META PLATFORMS INC CLASS A (3.03%)

• MICRON TECHNOLOGY INC (2.61%)

• TESLA INC (2.50%)

Please note that these are the top holdings and the list is partial. Holdings can change over time.

What the numbers show

When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes the value of distributions).

• Year-to-Date (YTD): The price return is approximately 9.77%, while the total return is approximately 10.32%.

• One-Year: The price return was approximately 12.62%, and the total return was approximately 13.36%.

• Three-Year: The price return was approximately 88.55%, and the total return was approximately 92.80%.

• Five-Year: The five-year total return was approximately 101.74%.

The fund has a history of forward splits. In its last split on July 17, 2023, each old share became 10 new shares. In a forward split, the price per share drops proportionally, but your total ownership stays the same.

Income and distribution explanation

XLG provides cash distributions to investors. The current distribution yield is approximately 0.61%. This means the cash paid out is about 0.61% of the current share price.

The fund usually pays distributions on a quarterly basis. Over the last 12 months, there were 4 payments. While some investors look for high yields, it is important to remember that a distribution yield is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• Strong Price Growth: The fund has shown significant positive price returns over the one-year and three-year periods.

• Low Erosion Risk: The data shows no detected price erosion.

Cons

• Concentration: Because it only holds the top 50 companies, it is less diversified than a total market fund.

• Lower Yield: The distribution yield of 0.61% is relatively low compared to funds specifically designed for high income.

Beginner takeaway

XLG is a fund that focuses on the biggest names in the stock market. It has shown strong price growth and total returns over several years. While it pays a small amount of regular income, its main characteristic is its focus on large-cap company growth rather than high dividend payments.