The selection of equities, listed on NYSE and NASDAQ, is updated dynamically by machine learning at market closure every night
Stocks are screened for strong fundamentals, controling for low volatility, a strong cash conversion ratio and low debt
Cash conversion
- signals quality when cash earnings (measured by FCF) gain on accrual earnings (measured by net income)
- it is a comparison of how much cash flow a company generates compared to its accounting profit
Debt leverage (D/E)
- Financial leverage refers to the amount of debt the company has been using to finance its business operations
- When interest rates are rising, low debt protects the firm, especially when profitability is impacted by a recession
Invesco S&P 500 Quality ETF