Invesco S&P SmallCap Momentum ETF (XSMO US) - Portfolio Construction Methodology

Core Insights - The Invesco S&P SmallCap Momentum ETF (XSMO US) is based on the S&P SmallCap 600 Momentum Index, which focuses on profitable and liquid U.S. small-cap stocks [1] - The index selects the top 120 securities based on risk-adjusted price momentum, utilizing standardized 6- and 12-month returns with outlier control [1] - Constituents are score-weighted, meaning those with higher momentum scores receive larger weights, while adhering to diversification controls to manage concentration risks [1] - The index undergoes semi-annual reconstitution and rebalancing, typically in June and December, using updated momentum calculations and current S&P 600 membership [1] - The small-cap parent index is maintained by a committee to ensure it reflects U.S. small-caps with sustained profitability, with market-cap guidelines that are below mid-cap and above micro-cap levels [1] Additional Insights - For further analysis of XSMO, an ETF analytics platform is available that provides institutional-grade insights, including performance and risk metrics, correlations, sensitivities, and factor exposure [2]