Exchange-traded funds have become one of the simplest ways for individual investors to build a diversified portfolio, and asset manager Invesco is one of the most respected providers of tactical ETFs. While smaller than behemoths like Vanguard or Fidelity, Invesco funds offer a more focused approach to the stock market than the typical array of index funds and sector funds.
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This suite of Invesco funds allows even small investors to steer their portfolio in a more strategic direction without researching or buying individual securities. Some of its funds focus on , while others are designed to reduce volatility or generate income.
The eight ETFs featured here represent the best Invesco funds that serve a variety of investment approaches. They are different enough to complement one another in a , or to allow a tactical tilt without duplicating positions in other large-cap funds. Whether you’re seeking exposure to technology leaders, defense contractors or bank loans, these funds offer unique ways to invest while still keeping costs and risks relatively low:
| Fund | Assets under management | Expense ratio |
| Invesco QQQ Trust (ticker: ) | $477 billion | 0.18% |
| Invesco S&P 500 Equal Weight ETF () | $95.8 billion | 0.20% |
| Invesco S&P 500 Momentum ETF () | $21.6 billion | 0.13% |
| Invesco S&P 500 Low Volatility ETF () | $7 billion | 0.25% |
| Invesco Aerospace & Defense ETF () | $8.1 billion | 0.58% |
| Invesco S&P MidCap Momentum ETF () | $7.4 billion | 0.35% |
| Invesco Senior Loan ETF () | $7.2 billion | 0.65% |
| Invesco KBW Bank ETF () | $7.2 billion | 0.35% |
Invesco QQQ Trust ()
The Invesco QQQ Trust isn’t just the largest fund from this asset manager, it’s one of the largest and most widely traded ETFs in the world. Rather than tracking the entire stock market, it follows the Nasdaq-100 index, featuring 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Because the Nasdaq is more tech heavy than the New York Stock Exchange, and the Nasdaq-100 is weighted by market value, QQQ is a common way to invest in the largest tech companies in the U.S. Almost 60% of the entire portfolio is in the tech sector, featuring a who’s who of Silicon Valley, including Microsoft Corp. (MSFT), Nvidia Corp. (NVDA), Amazon.com Inc. (AMZN) and Broadcom Inc. (). For investors seeking long-term growth with a bent toward , QQQ is a good alternative to the typical large-cap index fund.
Invesco S&P 500 Equal Weight ETF ()
Taking a very different approach, this is designed to avoid bias toward any specific stock based on size. RSP specifically takes an approach that gives all 500 companies roughly the same weight, and rebalances regularly to keep it that way, even after prices and values change. This approach reduces the concentration risk that naturally develops in traditional market-cap-weighted index funds. For instance, technology stocks represent just under 17% of the total portfolio compared with 38% in the massive Vanguard S&P 500 ETF (). You’ll still get the same big names in this Invesco ETF, but the difference is that no single stock dominates the portfolio. That is a plus for investors who want broader diversification.
Invesco S&P 500 Momentum ETF ()
The Invesco S&P 500 Momentum ETF is, as the name implies, a third alternative to funds that are either weighted by market value or equally weighted across holdings. Instead, SPMO follows a rules-based strategy that looks for stocks within the S&P 500 showing the strongest price momentum. The fund regularly updates its portfolio to ensure it holds the 100 companies — that is, the top 20% — with stronger momentum than their peers. Right now, that includes red-hot chipmakers Micron Technology Inc. (), Broadcom and Nvidia near the top of the list. Obviously, SPMO can outperform during sustained when winning stocks continue to rise. However, it may also experience sharper declines when market leadership changes. That makes it a higher risk but potentially higher reward approach to large-cap U.S. stocks.
Invesco S&P 500 Low Volatility ETF ()
The flip side to SPMO, this fund selects the 100 stocks in the S&P 500 that have the least amount of volatility. That isn’t particularly appealing in a bull market, when stocks that rise fast are in demand, but investors sometimes find themselves looking for a smoother ride during periods of . SPLV is designed with that goal in mind, and the portfolio is rebalanced quarterly to ensure it selects the top 20% of stocks in this leading index based on stability metrics. Recent holdings include solid blue chips that represent this approach, such as Coca-Cola Co. (), Johnson & Johnson (JNJ) and Procter & Gamble Co. (). While it won’t necessarily eliminate losses during bear markets, it has historically experienced smaller price swings than the broader market. If you’re worried about valuations and fearful that the bull market may run out of gas, this leading Invesco fund lets you reduce your risk profile while still keeping a foot in the stock market.
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Invesco Aerospace & Defense ETF ()
As indicated in its name, PPA invests in companies involved in military equipment, and related industries. At present there are about 60 holdings including traditional leaders like RTX Corp. (), GE Aerospace () and Boeing Co. (). However, the portfolio also includes both smaller companies involved in specialized technologies and manufacturing that may not be as obvious. PPA may appeal to investors seeking targeted exposure to a sector that often benefits from long-term government and recent geopolitical unrest.
Invesco S&P MidCap Momentum ETF ()
Large companies often dominate the headlines, but many investors overlook the growth potential of medium-sized businesses. XMMO focuses on companies in the S&P MidCap 400 Index. What’s more, it offers a momentum-focused screen similar to SPMO to keep investors in the top-performing stocks. The portfolio is rebalanced twice a year, re-ranking investments as market leadership changes and picking the top 20% of the index to build a portfolio of about 75 holdings. Current holdings include aerospace and defense company Curtiss-Wright Corp. () and next-gen energy company TechnipFMC PLC () — stocks that are both up more than 50% in the past 12 months. Mid caps carry more risk than large caps, however, so keep in mind that if and when momentum rolls over, this fund is also at risk of significant underperformance.
Invesco Senior Loan ETF ()
The Invesco Senior Loan ETF provides exposure to a very different part of the investment world. Instead of investing in stocks, BKLN owns a diversified portfolio of senior secured bank loans made to corporations. These loans are typically issued by below-investment-grade companies, but they occupy a senior position in a company’s capital structure and are secured by company assets. That means lenders move to the front of the queue for payment if financial problems should occur. Senior loans generally have floating interest rates, meaning their coupon payments adjust as short-term interest rates change, so the prospect of rate hikes in the near future makes BKLN a particularly interesting Invesco fund. Investors should remember that senior loans still carry credit risk, meaning borrowers could experience financial difficulties or default. But with a yield of about 6.7% at present — more than six times that of the typical S&P 500 stock — that risk may be worth it for some income investors.
Invesco KBW Bank ETF ()
KBWB provides an equity-focused approach to the , offering exposure to one of the economy’s most important industries: commercial banking. The fund tracks the KBW Nasdaq Bank Index, which includes many of the nation’s largest money-center and regional banks. It also intentionally excludes some financial stocks that creep into other funds, like insurers, to give a truly bank-focused portfolio. Top holdings include familiar favorites like JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (), but the full list of about 30 holdings include smaller firms like mid-sized Western Alliance Bancorp. (). Banks often perform well when the economy is expanding, and this focused Invesco fund gives investors a way to play that cyclical uptrend via the nation’s top lenders.
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Update 07/16/26: This story was published at an earlier date and has been updated with new information.
