Invesco offers a mix of mutual funds and ETFs.
After Invesco acquired OppenheimerFunds in 2019, the firm added significant breadth to its lineup of exchange-traded funds. Invesco now offers investors a mix of mutual funds under the Oppenheimer name, as well as ETFs from its BulletShares series and beyond. It may not be a household name like some bigger asset managers, but Steve Azoury, financial advisor and owner of Azoury Financial, says Invesco is “one of the world’s leading mutual fund companies; they manage tons and tons of money.” According to Azoury, “They are very big and they seem to have something for every type of investor.” For many years, the firm’s strength was in international investing, which had been underperforming the U.S. But that style may come back in favor. Here are seven Invesco mutual funds and ETFs to consider.
Invesco Oppenheimer Main Street Fund (ticker: MSIGX)
A large-cap blend mutual fund with a growth tilt, MSIGX’s top 10 holdings include some common tech names such as Microsoft Corp. (MSFT), Amazon.com (AMZN) and Facebook (FB), but it also includes some lesser-discussed holdings such as defense contractor Lockheed Martin (LMT) and real estate investment trust Prologis (PLD). This is one of “the benefits of active management,” says Todd Rosenbluth, director of ETF and mutual fund research at CFRA. Rosenbluth calls MSIGX a “patiently run fund (with) very low turnover.” He says performance has been strong with relatively low volatility. The fund’s 10-year total return is 11.96%, and it comes with an annual expense ratio of 0.85%, or $85 for every $10,000 invested.
Invesco Oppenheimer Discovery Mid Cap Growth Fund (OEGAX)
Azoury likes OEGAX, calling the mutual fund Invesco Oppenheimer’s “superstar right now,” with its strong performance. It’s up 13% year to date and has handily beaten both its category and index on three-, five- and 10-year time frames. OEGAX’s top two categories are technology and health care, two sectors that are supporting performance. RingCentral (RNG) and West Pharmaceutical Services (WST) are two of the fund’s largest holdings. The fund has seasoned managers; one of the managers has been with OEGAX since 2007. “It’s a well-diversified, well-managed fund. As you can see, the performance has been very, very consistent,” Azoury says. The fund’s 1.06% expense ratio is also considered to be relatively low among comparable mutual funds.
Invesco Oppenheimer International Growth Fund (OIGYX)
OIGYX is a mix of developed international markets with Europe and Japan representing the biggest weight in the portfolio. The mutual fund’s holdings are a balance of well-known companies such as Roche, Novo Nordisk (NVO) and SAP (SAP), but it also includes unusual picks like Hermes International and Hoya Corp. “It has strong performance and relatively low volatility, which we like,” Rosenbluth says. The fund has long-tenured managers; one of the managers has been around since the fund’s inception in 1996. OIGYX has a very low turnover rate of 10%, meaning about 10% of holdings have been bought or sold over the past year.
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
Chuck Self, chief investment officer for iSectors, likes this smart beta ETF from Invesco, which follows a dividend-yield weighted index. SPHD holds the 50 stocks in the S&P 500 that have the highest dividend yield and the lowest volatility, such as AT&T (T). The methodology is designed to eliminate potentially underperforming companies that may have high dividends because of sharply falling stock prices as earnings fall. This fund has lagged in the current market cycle that has favored high-growth and technology stocks. But Self says, “We expect the market will turn to value as the virus crisis subsides, and SPHD should be able to take advantage of this change.” As an ETF, SPHD comes with a smaller expense ratio of 0.3%.
Invesco Oppenheimer Rising Dividends (OARDX)
A large-cap blend mutual fund that invests in U.S. dividend growth stocks, OARDX’s biggest sector by weight is information technology at 23% of the fund, followed by 20% in financials. The fund holds companies not usually found in most large-cap funds, such as UnitedHealth (UNH), Home Depot (HD) and S&P Global (SPGI), and OARDX has a mix of growth and value assets, Rosenbluth notes. He likes the fund as it’s outperforming its peers and shows below-average volatility. Compared with other funds in its category, OARDX also takes on a below-average risk. The fund comes with an expense ratio of 1.06%.
Invesco BulletShares 2024 High Yield Corporate Bond ETF (BSJO)
Invesco’s BulletShares offering is a series of fixed-income funds that have defined maturities. Each fund holds securities maturing in the year defined by the fund. For example, the BulletShares 2024 High Yield Corporate Bond ETF holds a large number of bonds that mature in 2024. By the end of December 2024, the fund’s position will be in cash, which will be distributed to the fund’s shareholders. “Many investors purchase consecutive year series of BulletShares funds so they have a fund maturing every year that can be reinvested at current rates. This is called ‘laddering’ to fund holdings,” Self says. He adds that BulletShares are available for investment-grade corporate, high-yield corporate, municipal and emerging-market bond funds.
Invesco Active U.S. Real Estate Fund (PSR)
Most ETFs follow a passive index, but PSR is an actively managed REIT ETF focused on U.S. equities. The fund looks for real estate firms in which the majority of the assets and revenues are related to activities such as ownership, leasing and management. This includes companies such as American Tower Corp. (AMT) and Crown Castle International Corp. (CCI). Invesco chooses its holdings from the FTSE NAREIT All Equity REITs Index to help narrow selections, using quantitative and statistical metrics to identify securities and manage risk. Self says the 0.35% expense ratio is “well-priced for an active product.” The fund also comes with a yield of 3.4%.
Invesco mutual funds and ETFs to consider:
— Invesco Oppenheimer Main Street Fund (MSIGX)
— Invesco Oppenheimer Discovery Mid Cap Growth Fund (OEGAX)
— Invesco Oppenheimer International Growth Fund (OIGYX)
— Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
— Invesco Oppenheimer Rising Dividends (OARDX)
— Invesco BulletShares 2024 High Yield Corporate Bond ETF (BSJO)
— Invesco Active U.S. Real Estate Fund (PSR)
More from U.S. News