Invesco S&P 500 High Dividend Low Volatility ETF

SPHD

Market cap $3.13B

A smart beta exchange traded fund, the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) debuted on 10/18/2012, and offers broad exposure to the Style Box - Large Cap Value category of the market.

At various stages of life, we can have different financial goals and this will mean owning different exchange traded funds (ETFs).

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 500 High Dividend Low Volatility ETF (SPHD), a passively managed exchange traded fund launched on October 18, 2012.

Dividend paying stocks are attractive for a number of reasons. For investors looking to combat the effects of inflation on their savings, investing in companies that not only provide capital appreciation upside as prices rise, but also pay back a percentage of their earnings to investors in the form of dividends, is a time-tested strategy that still holds water (even though many top growth stocks have blown value/dividend stocks out of the water in terms of total returns over the past decade and a half).

FatCamera / iStock via Getty Images Balancing income and capital preservation is central for retirees.

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is rated a buy, anticipating a rebound as rate cuts support real estate and other sectors. Real estate, comprising 23% of SPHD, is poised for recovery with falling mortgage rates and renewed buyer demand, boosting sector momentum. Utilities, financials, and health care holdings in SPHD show improving fundamentals, with utilities benefiting from AI-driven demand and health care posting strong earnings.

The Invesco S&P 500 High Dividend Low Volatility ETF is rated a hold due to its failure to reduce volatility versus the S&P 500. SPHD offers a higher dividend yield (3.48%) than VOO, but underperforms on total and risk-adjusted returns, with similar or higher volatility. The ETF's sector concentration, high turnover, and higher expense ratio (0.30%) further diminish its appeal compared to VOO.

In July, we (my wife and I) received a dividend income total of $4,161.64. My other two Vanguard ETFs – S&P 500 (VOO) and Dividend Appreciation ETF (VIG) - both paid in July. We had a solid increase month, 3 stocks is fine with me here in 2025. Dividend growth has been soft, so 3 stocks increasing dividends is great with me.

Invesco S&P 500 High Dividend Low Volatility ETF remains a buy, offering a high-yield and modest valuation amid market volatility. SPHD's portfolio is overweight in Real Estate and Consumer Staples, with significant SMID cap exposure and no Information Technology holdings. Despite lagging the S&P 500, SPHD provides low volatility and attractive income, appealing to value- and income-focused investors.

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