Invesco S&P 500 High Beta ETF

SPHB

Market cap $452M

The Invesco S&P 500 High Beta ETF (SPHB) targets high-volatility stocks, offering outsized gains in bull markets but significant downside risk in downturns. SPHB is heavily weighted in technology and semiconductors, trades at a discount to the S&P 500, but lags in growth and profitability metrics due to limited mega-cap exposure. While SPHB outperformed over five years, its high volatility and weak risk-adjusted returns make it less attractive for broad market exposure compared to peers.

Fed rate cuts, trade truce & holiday cheer should boost markets! Some ETFs to buy now include SPHB, XLY, XSW, ITA & IWM.

Quality and value underperformed in the third quarter. But there's more to the market than Nvidia and AI.

The Invesco S&P 500 High Beta ETF (SPHB) is up a sizzling 27.3% year to date. SPHB targets the stocks in the S&P 500 with the highest sensitivity to market movements, or beta, over the past 12 months.

SPHB is comprised of 100 of the most volatile S&P 500 Index stocks over the last year. Its expense ratio is 0.25%, and the ETF has $507 million in AUM. SPHB solves some of SPY's company-level diversification risks by weighting its holdings by volatility. However, that strategy creates additional problems, particularly with quality. Besides a high beta, SPHB's most prominent factor is momentum, but unfortunately, everything else is average at best. Although subject to change, its fundamentals are not compelling right now.

SPHB hits a 52-week high, gaining 61% off its low as bullish market momentum fuels high-beta strength.

SPHB has surged 45% since mid-April, outperforming quality-focused ETFs, but this high-beta rally may be short-lived. Despite strong technical momentum and a breakout above resistance, bearish seasonality in August-September warrants caution. SPHB trades at a discount to the S&P 500 and is heavily weighted in Information Technology, but carries high volatility risk.

Court ruling halts Trump-era tariffs, boosting stocks and spotlighting high-beta, momentum ETFs like SPHB, MTUM, XMMO, SPMO and XSMO.

Just a month ago, ETF investors were pleased to simply hold onto their money. Now they're looking for big gains in the S&P 500 again.

U.S. stock markets climbed on Thursday, thanks to President Trump's announcement of a new trade agreement with the UK and his upbeat comments on future negotiations with China. The Nasdaq Composite gained about 1%, while both the S&P 500 and the Dow Jones Industrial Average rose roughly 0.6%.