Invesco S&P 500 High Beta ETF

SPHB

Market cap $500M

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%.

SPHB, an Invesco ETF, targets the most volatile 100 S&P 500 stocks but has underperformed compared to other low-fee ETFs like SPY and SPUU. The fund's portfolio somewhat resembles the S&P 500 but with higher weightings in technology and industrials, yet it hasn't driven significant gains. For U.S. market recovery, SPHB isn't the best option; SPY or SPUU offer better performance and lower fees.

Trump signals steep China tariffs may drop, boosting hopes for trade de-escalation.

Although Wall Street is off to a good start this week amid hopes of an administrative windfall for some sectors, volatility will persist.

In a surprising development in the tariff saga, Trump announced a temporary drop in tariff rates for most countries to 10% for 90 days, triggering a historic stock market surge.