Core Insights - The Invesco S&P 500 Quality ETF (SPHQ) focuses on financially sound companies by screening for profitability, stability, and operational excellence rather than just market capitalization [2][3] - SPHQ aims to provide core equity exposure with a preference for companies that generate strong returns on capital and maintain consistent earnings, distinguishing itself from growth or value funds [3] Fund Methodology - The fund screens 120 S&P 500 companies based on return on equity, financial leverage, and earnings consistency, favoring businesses with pricing power and predictable cash flows [4] - Major holdings include Mastercard and Visa, which together account for nearly 10% of the portfolio, benefiting from network effects and transaction volume growth [4][8] - Costco is also a top holding, known for its membership-driven model that generates predictable revenue streams [5] Performance Metrics - Over the past five years, SPHQ has returned 93.7%, outperforming the S&P 500's 77.1%, indicating that filtering for financial strength adds value over time [6][8] - Year to date in 2026, SPHQ gained 6.0% compared to the S&P 500's 1.5% [6][8] - Individual holdings like Mastercard have consistently beaten earnings estimates, reflecting the competitive advantages of quality companies [7]

Core Viewpoint - Invesco Mortgage Capital Inc. announced a cash dividend of $0.12 per share for February 2026, alongside a financial update as of January 31, 2026, highlighting key metrics such as debt-to-equity ratios and portfolio composition [1][2]. Financial Highlights - The company reported a debt-to-equity ratio of 6.1x and an economic debt-to-equity ratio of 7.1x as of January 31, 2026 [1]. - The estimated book value per common share was $8.91 [1]. - Total repurchase agreement borrowings amounted to $5.4 billion [1]. - Unrestricted cash and unencumbered investments totaled $510.7 million [1]. - The total investment portfolio, including TBAs, was valued at $7.1 billion [1]. Portfolio Composition - The investment portfolio as of January 31, 2026, included: - Agency RMBS with a total fair value of $5.16 billion, accounting for 72.7% of the portfolio, with a weighted average yield of 5.43% [1]. - Agency CMO valued at $68.5 million (1.0% of the portfolio) with a yield of 8.88% [1]. - Agency CMBS valued at $900.3 million (12.7% of the portfolio) with a yield of 4.62% [1]. - TBAs at an implied market value of $963.7 million, representing 13.6% of the total investment portfolio [1]. Borrowings and Interest Rate Swaps - The company had outstanding borrowings of $5.4 billion in repurchase agreements with a weighted average interest rate of 3.83% and a remaining maturity of 23 days as of January 31, 2026 [1]. - Interest rate swaps included notional amounts totaling $4.225 billion, with a weighted average fixed pay rate of 1.71% and a weighted average floating receive rate of 3.68% [1]. Company Overview - Invesco Mortgage Capital Inc. is a real estate investment trust focused on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets [2]. - The company is externally managed by Invesco Advisers, Inc., a subsidiary of Invesco Ltd., a global investment management firm [2].

Core Insights - Despite concerns about foreign investors selling U.S. assets, stock inflows remain robust, although foreign purchases of U.S. Treasuries have significantly decreased, leading to the emergence of the "hedge America" trade narrative [1][2]. Group 1: Market Reactions - Danish pension fund Akademiker Pension's $100 million sale of U.S. Treasuries was characterized as routine business due to deficit concerns rather than a political stance, indicating a shift towards hedging rather than outright selling [2]. - The U.S. dollar index (DXY) has decreased to 96.83 from a high of 108, reflecting a broader trend of dollar depreciation [3]. Group 2: Asset Performance - The S&P 500 is near all-time highs at $6,877, while silver prices have more than doubled from last year, currently above $77, showcasing strong performance in equities and commodities despite dollar weakness [4]. - Foreign investments in U.S. equities reached $689 billion through November 2025, significantly up from $197 billion the previous year, indicating a strong appetite for U.S. stocks [7]. Group 3: Market Sentiment and Predictions - Polymarket traders show varied expectations for Federal Reserve rate cuts, with 27% odds for either two or three cuts in 2026, and a declining market perception of a U.S. recession now at 24% [5]. - Rate cuts typically lead to a weaker dollar as investors seek better yields abroad, while increased liquidity tends to boost stocks and commodities [6]. Group 4: Crypto Market Dynamics - The anticipated correlation between cryptocurrency and gold during dollar depreciation has not materialized, with Bitcoin experiencing a 50% drop from its October highs, suggesting a potential decline in the 'digital gold' narrative [8].

Core Viewpoint - Chip stocks, particularly those involved in artificial intelligence (AI), are not as overvalued as previously thought, providing potential investment opportunities within ETFs like QQQ and QQQM [1] Group 1: Semiconductor Stocks - Semiconductors are crucial for AI developments, leading to increased interest in ETFs that include chip stocks [1] - Nvidia, the largest holding in QQQ and QQQM, represents nearly 9% of these ETFs and continues to innovate in AI solutions, indicating strong fundamentals [1] - Broadcom, another significant holding, is experiencing accelerated growth in its AI chip business, driven by high demand for its products, particularly Google's TPU chip [1] Group 2: Investment Outlook - Despite being growth funds, QQQ and QQQM still offer value through their semiconductor holdings, which have attractive fundamental outlooks [1] - AMD is also positioned to benefit from AI developments, with expectations of meaningful revenue from its MI450 products in the latter part of the year [1]

Core Viewpoint - The S&P 500 index currently exhibits significant concentration risk, with just five stocks representing approximately 27% of the index, highlighting the implications of market capitalization weighting in index funds [2]. Group 1: Concentration Risk - Concentration risk refers to a small number of stocks dominating a supposedly diverse index, which is evident in the current state of the S&P 500 [1]. - As of February 9, 2023, five stocks accounted for about 27% of the S&P 500, a historically high percentage [2]. Group 2: Investment Strategies - The Invesco S&P 500 Equal Weight ETF, valued at $86.3 billion, offers an alternative to mitigate concentration risk by equally weighting the S&P 500's holdings [5]. - The ALPS Equal Sector Weight ETF provides a different approach by equally weighting the 11 sectors of the S&P 500, which may be beneficial given the current dominance of AI stocks in the technology sector [7]. - Equally weighting sectors has shown to outperform traditional weighting methods over various time frames, including 12 months, three years, five years, and ten years [8]. Group 3: Performance Insights - The ALPS Equal Sector Weight ETF's strategy allows for better performance by not diluting the positive contributions from popular stocks compared to traditional equal weighting [9].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco offers expert investment views through its US Blog, encouraging individuals to stay informed [1] - The firm emphasizes the importance of reading the prospectus and considering investment objectives, risks, charges, and expenses before investing [1] - Invesco does not provide tax advice and highlights the complexity and variability of federal and state tax laws [1] Group 2 - The opinions expressed by Invesco's authors are based on current market conditions and may change without notice [1] - Invesco's investment advisory services are provided by affiliated investment advisers, and they do not sell securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc., and other broker-dealers [1]

Core Insights - The Invesco Food & Beverage ETF (PBJ) has shown double-digit gains year-to-date, outperforming the S&P 500's 1.3% return, indicating potential for investors in the food and beverage sector [1] - Over a five-year period, PBJ has underperformed the S&P 500 due to slower growth in the food and beverage industry compared to technology sectors [1] - The fund has a significant concentration risk, with the top 10 holdings representing approximately 45% of its assets, which could lead to volatility if a few companies underperform [1] Fund Overview - PBJ provides exposure to the food and beverage industry, including beverage manufacturers like Monster Beverage and PepsiCo, food distributors like Sysco, and retailers like Kroger [1] - The fund focuses on 30 holdings, with nearly 90% of assets in Consumer Staples companies, emphasizing high-margin beverage plays [1] - PBJ charges a 0.61% expense ratio and offers a 1.72% dividend yield, appealing to investors seeking income alongside growth [1] Market Positioning - PBJ is positioned as a tactical sector bet or defensive holding during market volatility, demonstrating defensive strength with double-digit gains amid broader market uncertainty [1] - The fund's performance reflects the trade-offs of sector concentration, as it has lagged behind the S&P 500 over five years due to the slower growth profile of food and beverage companies [1] - Commodity cost pressures, such as rising beef and coffee prices, could impact margins for food producers and distributors within the portfolio [1]

Core Viewpoint - The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) has seen a significant increase in interest from retirees following a 23.3% hike in annual dividends, reflecting a shift towards defensive investment strategies amid market volatility [1]. Group 1: SPHD Performance and Dividend Increase - SPHD has gained 8.93% year to date, significantly outperforming the S&P 500's 1.5% return [1]. - The fund's annual dividends increased to $2.0173 in 2025, marking a 23.3% rise from 2024 due to higher payouts and strategic rebalancing [1]. - Competing dividend ETFs, such as Schwab ETF (SCHD) and Vanguard ETF (VYM), have outperformed SPHD with returns of 17.5% and 20.05% respectively over the past year [1]. Group 2: Interest Rate Impact - The direction of interest rates poses a significant risk for SPHD, with current yields making its 4.69% yield more competitive against risk-free alternatives [1]. - The fund's heavy concentration in rate-sensitive sectors like REITs and utilities means profitability is directly affected by changes in borrowing costs [1]. - Monitoring Federal Reserve policy and Consumer Price Index releases is crucial to gauge future interest rate movements that could impact SPHD [1]. Group 3: Structural Challenges - SPHD's methodology excludes most technology stocks, leading to a lack of growth exposure and persistent performance drag during bull markets [1]. - The top holdings include mature companies like Pfizer, UPS, and Altria, which have limited growth prospects [1]. - The performance gap between SPHD and competing dividend ETFs is attributed to SPHD's strict low-volatility screen, which limits access to higher-growth dividend payers [1].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment management [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]

Cost, diversification, and portfolio strategy set these two consumer staples ETFs apart for investors seeking sector exposure.The Fidelity MSCI Consumer Staples Index ETF (FSTA +1.24%) and the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS +1.46%) both target U.S. consumer staples stocks, but they take different approaches.FSTA tracks a market-cap-weighted index, heavily favoring the sector’s largest players, while RSPS equally weights all S&P 500 consumer staples constituents. This comparison unpa ...