Invesco Indexing is conducting a consultation on the treatment of turnover in the Invesco Defensive Equity Index resulting from an update to a data input used in the Index’s security selection. The overall profile and exposures of the Index are expected to remain unchanged, though the new data input will result in some changes to index constituents and will have attendant impact on Index turnover.
Invesco Indexing seeks input from market participants on three potential options for handling upcoming rebalances of the Invesco Defensive Equity Index:
Based on data as of December 2020, if the new data input were used, the quarterly turnover for the Index would be 38%.
For context, the recent quarterly Index turnover was as follows:
Date |
Turnover |
4Q20 |
25.1% |
3Q20 |
27.6% |
2Q20 |
27.7% |
1Q20 |
55.8% |
4Q19 |
35.6% |
3Q19 |
27.5% |
2Q19 |
29.9% |
1Q19 |
39.2% |
4Q18 |
40.2% |
3Q18 |
44.1% |
2Q18 |
32.3% |
Invesco Indexing welcomes your feedback on these proposals through March 5, 2021. To share your preference for these options, or provide additional feedback, please contact Invesco Indexing at IndexSupport@invesco.com.