The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) tracks a dividend-yield-weighted index that is comprised of the least volatile, highest-dividend-yielding stocks in the S&P 500.
SPHD cherry-picks the U.S. equity market, rather than delivering the whole basket. It includes the 50 least volatile names chosen from a shortlist of the S&P 500’s 75 highest-dividend-yielding securities. The fund then weights selected stocks based on trailing 12-month dividend yield, with sector weights capped at 25%.
Looking a little like the broad large-cap market, SPHD tilts small and tends to overweight traditionally defensive industries such as utilities and basic materials. The fund might also underweight the more volatile technology and consumer cyclical companies. The index is rebalanced semi-annually.
The fund has amassed $3.7 billion in assets under management and has a 0.02% average spread. Its expense ratio is 0.30%, meaning it is relatively inexpensive to hold in relation to other exchange-traded funds, and it has a solid 3.23% dividend yield.
Chart Courtesy of StockCharts.com
Invesco S&P 500 High Dividend Low Volatility ETF has an MSCI ESG Fund Rating of AA based on a score of 8.39 out of 10. The MSCI ESG Fund Rating measures the resiliency of portfolios to long-term risks and opportunities arising from environmental, social and governance factors.
ESG Fund Ratings range from best (AAA) to worst (CCC). Highly rated funds consist of companies that tend to show strong and/or improving management of financially relevant environmental, social and governance issues. These companies may be more resilient to disruptions arising from ESG events.
I urge all interested investors to exercise their own due diligence in deciding whether this fund fits their own individual portfolio goals.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
