Seeking Quality - Strong Cash Flow and Prudent Debt Leverage

Components Performance/Risk
Period Return
-9.4%
Return Rank
Subpar
Risk Exposure
Above Average

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 is the benchmark of the selection

Performance History
Components Performance/Risk
Weights by Sector
Sector Performance/Risk