Should Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) Be on Your Investing Radar?

The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) was launched on 10/18/2012, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $3.49 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 2.98%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Real Estate sector--about 20.20% of the portfolio. Utilities and Consumer Staples round out the top three.Looking at individual holdings, Altria Group Inc (MO) accounts for about 3.19% of total assets, followed by Crown Castle Inc (CCI) and Verizon Communications Inc (VZ).The top 10 holdings account for about 27.4% of total assets under management.Performance and RiskSPHD seeks to match the performance of the S&P 500 Low Volatility High Dividend Index before fees and expenses. 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.The ETF has added about 4.05% so far this year and was up about 17.88% in the last one year (as of 03/21/2025). In the past 52-week period, it has traded between $42.08 and $51.75.The ETF has a beta of 0.85 and standard deviation of 14.50% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 High Dividend Low Volatility ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPHD is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $69.92 billion in assets, Vanguard Value ETF has $133.90 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.To 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 High Dividend Low Volatility ETF (SPHD): ETF Research Reports Verizon Communications Inc. (VZ): Free Stock Analysis Report Altria Group, Inc. (MO): Free Stock Analysis Report Crown Castle Inc. (CCI): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks