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

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.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.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 sponsored by Invesco. It has amassed assets over $3.17 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, SPHD 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 ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.With on par with most peer products in the space, this ETF has annual operating expenses of 0.30%.It's 12-month trailing dividend yield comes in at 3.43%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.SPHD's heaviest allocation is in the Real Estate sector, which is about 20.9% of the portfolio. Its Utilities and Consumer Staples round out the top three.Looking at individual holdings, Crown Castle Inc (CCI) accounts for about 3.49% of total assets, followed by Altria Group Inc (MO) and Verizon Communications Inc (VZ).The top 10 holdings account for about 28.65% of total assets under management.Performance and RiskThe ETF return is roughly 3.49% and was up about 9.2% so far this year and in the past one year (as of 07/28/2025), respectively. SPHD has traded between $44.37 and $51.75 during this last 52-week period. The fund has a beta of 0.71 and standard deviation of 14.79% for the trailing three-year period, which makes SPHD a medium risk choice in this particular space. With about 51 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 ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $71.33 billion in assets, Vanguard Value ETF has $141.62 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.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.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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks