Is Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is a smart beta exchange traded fund launched on 10/18/2012.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexThe fund is managed by Invesco. SPHD has been able to amass assets over $3.26 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. SPHD, before fees and expenses, seeks to match the performance of the S&P 500 Low Volatility High Dividend Index.The S&P 500 Low Volatility High Dividend Index comprises of 50 securities traded on the S&P 500 Index that historically have provided high dividend yields and low volatility.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.With on par with most peer products in the space, this ETF has annual operating expenses of 0.30%.SPHD's 12-month trailing dividend yield is 4.52%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.SPHD's heaviest allocation is in the Real Estate sector, which is about 21.5% of the portfolio. Its Consumer Staples and Financials round out the top three.Taking into account individual holdings, Verizon Communications Inc (VZ) accounts for about 3.43% of the fund's total assets, followed by Altria Group Inc (MO) and Pfizer Inc (PFE).Its top 10 holdings account for approximately 28.36% of SPHD's total assets under management.Performance and RiskSo far this year, SPHD has added roughly 6.76%, and it's up approximately 11.56% in the last one year (as of 06/08/2026). During this past 52-week period, the fund has traded between $46.96 and $52.63.The ETF has a beta of 0.61 and standard deviation of 12.63% for the trailing three-year period, making it a medium risk choice in the space. With about 62 holdings, it effectively diversifies company-specific risk .AlternativesInvesco S&P 500 High Dividend Low Volatility ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $95.07 billion in assets, Vanguard Value Index Fund ETF Shares has $179.25 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap ValueBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks