XMLV: INVESCO S&P MIDCAP LOW VOLATILITY ETF
ETF Education Report: INVESCO S&P MIDCAP LOW VOLATILITY ETF (XMLV)
What this ETF is trying to do
The INVESCO S&P MIDCAP LOW VOLATILITY ETF (ticker: XMLV) is an exchange-traded fund designed to track midcap companies. "Midcap" refers to companies that are medium-sized. This specific fund focuses on "low volatility," which generally means it looks for stocks that may have smaller, smoother price swings compared to the broader market.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out to investors.
For XMLV, the numbers show:
• Year-to-Date (YTD): The price return is approximately 5.04%, while the total return is approximately 6.82%.
• One-Year: The price return is approximately 3.08%, while the total return is approximately 6.29%.
• Three-Year: The price return is approximately 29.01%, while the total return is approximately 38.85%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $63.55. The current price is $65.51.
Income and distribution explanation
This ETF pays out cash to investors, known as distributions. The distribution yield is currently approximately 2.97%. This number describes the cash payments relative to the ETF's price. These distributions usually happen quarterly, and there have been 4 payouts in the last 12 months. 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 assets held by the fund). While a falling share price can sometimes be a sign of erosion, it is not proof of it. For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this fund.
Top Holdings
The following are some of the top holdings in this portfolio (note that this list is partial):
• TXNM ENERGY INC (5.41%)
• OGE ENERGY CORP (1.58%)
• AGREE REALTY CORP (1.52%)
• INGREDION INC (1.48%)
• W.P. CAREY INC (1.48%)
Pros
• The fund shows a history of positive total returns over one, three, and five-year periods.
• The erosion-risk measurements suggest a stable profile.
Cons
• Investors should remember that past performance does not guarantee future results.
• The list of holdings provided is only a partial view of the total 82 holdings.
Beginner takeaway
When studying XMLV, notice the difference between the price return and the total return. The total return is higher because it accounts for the cash distributions paid to shareholders. Always look at both numbers to get a full picture of how an investment has performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | TXNM ENERGY INC | TXNM | 5.58% |
| 2 | OGE ENERGY CORP | OGE | 1.61% |
| 3 | AGREE REALTY CORP | ADC | 1.51% |
| 4 | IDACORP INC | IDA | 1.50% |
| 5 | INGREDION INC | INGR | 1.48% |
| 6 | W.P. CAREY INC | WPC | 1.48% |
| 7 | NEW JERSEY RESOURCES CORP | NJR | 1.47% |
| 8 | NNN REIT INC | NNN | 1.46% |
| 9 | EASTGROUP PROPERTIES INC | EGP | 1.44% |
| 10 | ONE GAS INC | OGS | 1.41% |