The Invesco S&P 500® Top 50 ETF (XLG) is an exchange-traded fund designed to track the performance of the largest companies within the S&P 500 Index. The ETF is managed by Invesco and trades under the ticker XLG on the NYSE Arca.

Classified as a large-cap equity ETF, the fund provides concentrated exposure to some of the largest publicly traded companies in the United States. Its portfolio consists of the fifty largest constituents of the S&P 500, representing a substantial portion of the overall U.S. equity market.

The ETF follows a passive management approach and seeks to replicate the performance of the S&P 500 Top 50 Index, a benchmark composed of the largest S&P 500 companies weighted by market capitalization.

Diversification and sector exposure

XLG provides exposure primarily associated with:

• U.S. mega-cap companies.

• Technology.

• Communication services.

• Financial services.

• Consumer discretionary.

• Healthcare.

• Industrials.

• Market-leading businesses.

The portfolio is concentrated in companies that hold leading positions within their industries, including many of the most influential corporations in the U.S. economy.

The ETF’s performance is closely tied to the results of large-scale businesses that have a significant impact on the broader equity market. As a result, movements in a relatively small number of companies can meaningfully influence overall returns.

Structure and costs

XLG shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund’s distribution policy.

Because the portfolio focuses on a limited number of large-cap companies, the ETF offers less diversification than funds that track the broader S&P 500 universe.

History and evolution of the ETF

The Invesco S&P 500® Top 50 ETF was launched in 2005 with the objective of providing targeted exposure to the largest companies in the U.S. stock market through a single exchange-traded vehicle.

Since inception, the fund has tracked the evolution of the corporations that play a leading role in the American economy, reflecting shifts in sector composition and changes in the relative importance of different industries.

In recent years, the growth of major technology, communication-services, and consumer-focused companies has increased the influence of mega-cap stocks within U.S. equity indexes, a trend that continues to shape the ETF’s composition and performance.

Additional Information

Invesco S&P 500® Top 50 ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $10.46 billion.

Over the past 12 months, Invesco S&P 500® Top 50 ETF recorded a return of 16.68%, with its price trading between $52.83 and $64.59 during the same period.

The ETF is traded under the ticker XLG.