The fund tracks the Invesco Strategic US Index and selects stocks from among top US companies that have a large business size and high quality scores. Compared with traditional indexes, it uses a strategy that focuses more on a company's real value.

It suits investors who want exposure to US large caps but prefer companies with solid financial structures and high intrinsic value over stocks that are simply expensive.

Invesco launched the ETF in 2018, and it is managed passively (index tracking).

Company size is measured using five-year averages of four fundamental metrics: revenue, operating cash flow, capital return, and book value. The fund then selects top companies with high asset efficiency relative to revenue and weights them by fundamental score, aiming to outperform the index.

• Applies RAFI's distinctive fundamental weighting method
• Excludes financially weak companies through quality screening

Assets under management (AUM) stand at $1.0B, and the expense ratio is 0.19% per year.

Because weights are set by a company's actual business size rather than its market capitalization, the fund reduces exposure to overheated stocks and increases exposure to undervalued blue chips, delivering the effect of a "contrarian strategy."

In growth-led bull markets driven by technology stocks, its gains may lag the index somewhat. In rotation markets where value and quality stocks draw attention, however, it has shown solid defensive strength and maintained an upward trend.

As interest in smart beta strategies grows, money has been flowing in as a complement to core holdings, and there is visible demand from investors who expect downside protection in volatile market environments.

The portfolio centers on blue chips with proven financial soundness and seeks stable long-term performance, but it can be left behind during sharp rallies led by growth stocks.

ITOT, SCHB, and IWV shown in the table are representative core ETFs that track the entire US market using market-cap weighting. Unlike them, IUS is based on fundamentals, so the weights of its holdings differ significantly. In particular, it shares a similar philosophy with PRF, a flagship product of the same family, but differs in its screening method. If you want to concentrate on large caps, you can also compare it with OEF and similar products.

Before making a final decision on investing in IUS, it is wise to review the following key management principles and metrics and check in advance whether they match your own investment style and philosophy.

Because fundamental weighting does not follow temporary market crowding, investors should recognize from a long-term perspective that the fund may be left out of fashionable sectors or themes.

In conclusion, it is an excellent alternative for investors who want to enjoy the growth of the US large-cap market while compensating for the limits of market-cap weighting and focusing on financially strong companies.