Invesco S&P Ultra Dividend Revenue ETF

RDIV

Market cap $832M

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P Ultra Dividend Revenue ETF (RDIV) is a passively managed exchange traded fund launched on October 1, 2013.

Invesco S&P Ultra Dividend Revenue ETF is rated a hold due to high risk, poor risk-adjusted returns, and excessive portfolio concentration. RDIV offers a high dividend yield (3.91%) but suffers from high volatility, inconsistent performance, and weak fundamentals compared to benchmarks like IWB. The fund's revenue-weighted, yield-focused strategy lacks quality screens, leading to exposure to yield traps and underperformance in growth-driven markets.

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco S&P Ultra Dividend Revenue ETF (RDIV), a passively managed exchange traded fund launched on October 1, 2013.

RDIV selects 60 S&P 900 Index stocks based on their dividend yields after applying yield trap screens to filter out the riskiest investments. Its expense ratio is 0.39%. I estimate RDIV yields 4.24% at current prices, and along with the fund's ultra-low 10.95x forward P/E ratio, I expect it will attract income and value investors. Unfortunately, those advantages are overshadowed by below average quality features and a -6.75% three-year earnings growth rate, which leads to a poor dividend safety score.

The Invesco S&P Ultra Dividend Revenue ETF (RDIV) was launched on 10/01/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

RDIV offers exposure to a revenue-weighted portfolio of the S&P 900 constituents that were screened for high dividend yields. With a 4.9% weighted average DY of the portfolio, RDIV is a champion of calibrating inexpensive equity mixes. In part thanks to that, it has beaten IVV this year. Alas, its long-term performance has not been particularly successful, growth exposure is minimal, and weighted average dividend growth rates of its portfolio are hardly compelling.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Invesco S&P Ultra Dividend Revenue ETF (RDIV), a passively managed exchange traded fund launched on 10/01/2013.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Invesco S&P Ultra Dividend Revenue ETF (RDIV), a passively managed exchange traded fund launched on 10/01/2013.

RDIV offers a 3.8% dividend yield but has high exposure to cyclical sectors, introducing significant downside risks during economic downturns. The fund's revenue-weighting strategy selects high-yielding stocks, but this can lead to volatility and inconsistent dividends in economic turmoil. RDIV's portfolio is heavily weighted towards value stocks, with 90% in mid and large-cap sectors, and lacks exposure to technology stocks.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Invesco S&P Ultra Dividend Revenue ETF (RDIV), a passively managed exchange traded fund launched on 10/01/2013.