Is the Invesco S&P 500 High Dividend Low Volatility ETF Worth Considering

The Invesco S&P 500 High Dividend Low Volatility ETF offers a stable investment option with a solid dividend yield and low volatility

Is the Invesco S&P 500 High Dividend Low Volatility ETF Worth Considering
Is the Invesco S&P 500 High Dividend Low Volatility ETF Worth Considering

Chicago: So, have you heard about the Invesco S&P 500 High Dividend Low Volatility ETF, or SPHD for short? It launched back in 2012 and aims to give investors a solid way to tap into large-cap value stocks. This fund has gathered quite a bit of attention, with over $3.35 billion in assets. That’s pretty impressive for an ETF!

Large-cap companies are generally those with market caps over $10 billion. They’re usually more stable and have predictable cash flows, which makes them less risky compared to smaller companies. Value stocks, like those in this ETF, often have lower price-to-earnings ratios and slower growth rates. While they tend to do well over the long haul, growth stocks can shine in booming markets.

When it comes to costs, this ETF has an expense ratio of 0.30%. That’s pretty standard for its category. Plus, it offers a decent dividend yield of 3.39%, which is nice for income-focused investors.

SPHD is heavily invested in the Utilities sector, making up about 19.60% of its portfolio. Consumer Staples and Healthcare are also significant players in this fund. If you look at its top holdings, Kinder Morgan, Bristol-Myers Squibb, and Altria Group are among the biggest names. Together, the top 10 holdings account for about 27% of the total assets.

In terms of performance, SPHD aims to match the S&P 500 Low Volatility High Dividend Index. This index includes 50 stocks known for their high dividends and low volatility. So far this year, the ETF has gained about 0.41%, and it’s up around 18.41% over the past year. It’s traded between $41.15 and $51.75 in the last 52 weeks.

With a beta of 0.87, it’s considered a medium-risk option. It has around 51 holdings, which helps spread out the risk of any single stock.

If you’re looking for alternatives, SPHD has a Zacks ETF Rank of 3, which means it’s a hold. Other options include the Schwab U.S. Dividend Equity ETF and the Vanguard Value ETF, both of which have lower expense ratios.

In summary, SPHD is a solid choice for long-term investors. Its low costs and transparency make it appealing for both retail and institutional investors. If you want to dive deeper into ETFs, check out Zacks ETF Center for more info.

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