Discovering the Magic of IUS: Invesco RAFI™ Strategic US ETF
Have you ever felt like the stock market is a mystifying labyrinth, filled with enigmatic acronyms and seemingly random stock selections? Fear not, dear reader! Let’s embark on a delightful journey into the world of exchange-traded funds (ETFs), specifically the Invesco RAFI™ Strategic US ETF (IUS).
IUS is a captivating fund that holds over 500 stocks, each handpicked and weighted based on a fundamental size score and a quality score. But what does that mean, you ask? Let’s break it down with all the charm and wit of a fairy tale.
The Enchanted Selection Process
Imagine a magical oracle that can peer into the heart of every publicly traded US company and assign each one a score based on its size and quality. This oracle is none other than the RAFI™ index, and IUS is the fund that brings its wisdom to life.
The fundamental size score reflects the market capitalization of a company, while the quality score is derived from book value, income, and sales. This dual approach allows IUS to select stocks that not only have a solid foundation (size) but also exhibit strong fundamentals (quality).
A Dazzling Display of Diversity
Now, let’s talk about the sectors and holdings. IUS is a veritable treasure trove of diversification, with a broader sector allocation than the S&P 500 index. This means that IUS spreads its bets across various industries, helping to mitigate risk.
Moreover, the holdings within IUS are a captivating tapestry of companies, large and small, from different sectors. This diversity is a testament to the power of the RAFI™ index’s selection process.
A Spellbinding Performance
But what good is a well-diversified, intricately selected fund if it doesn’t deliver the goods? Fear not, dear reader! IUS has been a star performer over the last six years, outshining many popular large cap value ETFs in both return and dividend growth.
- From 2016 to 2021, IUS returned an impressive 111.82%, compared to the S&P 500’s 86.19% and the S&P 500 Value Index’s 83.34%.
- During the same period, IUS’s dividend growth rate was a robust 14.41%, surpassing the S&P 500 Value Index’s 11.48%.
So, what does all of this mean for you, our dear reader?
A Charming Impact on Your Portfolio
By investing in IUS, you’ll be joining a community of investors who value a well-diversified, fundamentally sound portfolio. With its unique selection process and solid performance, IUS could be a delightful addition to your investment repertoire.
But the magic of IUS doesn’t stop there. Its captivating performance and intriguing diversification could also have a profound impact on the world.
A Wondrous Impact on the World
As more and more investors discover the allure of IUS, it could lead to increased interest in fundamental indexing and value investing. This, in turn, could result in a shift in the investment landscape, with more focus on companies that exhibit strong fundamentals and less on those that rely solely on market capitalization.
Moreover, the success of IUS could inspire other ETF issuers to explore similar strategies, leading to a more diverse and competitive marketplace.
In Conclusion: A Magical Journey into the World of IUS
And so, dear reader, we’ve reached the end of our enchanting journey into the world of the Invesco RAFI™ Strategic US ETF (IUS). With its unique selection process, dazzling diversification, and spellbinding performance, IUS is a captivating fund that could be a delightful addition to your investment portfolio. And who knows? Its success could even have a profound impact on the world of investing as we know it.
So, if you’re feeling a bit lost in the labyrinth of the stock market, take a moment to consider the magic of IUS. Who knows where it might take you?
