Invesco S&P 500® High Dividend Low Volatility ETF (SPHD)

Invesco S&P 500® High Dividend Low Volatility ETF (SPHD) Overview

Profile:

The Invesco S&P 500® High Dividend Low Volatility ETF (SPHD) is a passively managed exchange-traded fund (ETF) that tracks the S&P 500® High Dividend Low Volatility Index. This index comprises 50 securities from the S&P 500, chosen for their high dividend yield and low volatility. The ETF invests in these stocks in the same proportion as they are represented in the index.

Objective:

SPHD's primary investment goal is to provide investors with a high level of current income through dividend payments and to minimize volatility through exposure to low-volatility stocks.

Issuer:

Invesco is a global investment management company with over $1.4 trillion in assets under management (as of June 30, 2023). The company has a strong reputation for providing innovative and high-quality investment products and services. The portfolio management team for SPHD has extensive experience in managing index-tracking ETFs.

Market Share:

SPHD is one of the largest and most popular high-dividend, low-volatility ETFs in the market, with over $11 billion in assets under management (as of November 9, 2023).

Total Net Assets:

As of November 9, 2023, SPHD has total net assets of $11.02 billion.

Moat:

SPHD's competitive advantages include:

• Low expense ratio: The ETF has an expense ratio of 0.30%, which is lower than many comparable ETFs.
• Diversification: The ETF provides exposure to a diversified portfolio of 50 stocks, which helps to mitigate risk.
• Strong track record: SPHD has a strong track record of outperforming its benchmark index.

Financial Performance:

SPHD has a 3-year annualized return of 10.51% as of November 9, 2023. This compares favorably to the S&P 500 Index, which has a 3-year annualized return of 9.51% over the same period.

Growth Trajectory:

The demand for high-dividend, low-volatility ETFs is expected to continue to grow as investors seek income and capital preservation in a volatile market environment. SPHD is well-positioned to benefit from this trend.

Liquidity:

SPHD has an average daily trading volume of over 2 million shares, making it a highly liquid ETF. The bid-ask spread is typically narrow, which means that investors can buy and sell shares at a fair price.

Market Dynamics:

The ETF's market environment is affected by various factors, including economic indicators, sector growth prospects, and current market conditions. For example, rising interest rates can impact the attractiveness of high-dividend stocks, while periods of economic uncertainty can lead investors to seek low-volatility investments.

Competitors:

SPHD's main competitors include:

• iShares S&P 500 High Dividend Low Volatility ETF (SPHD): Market share - 35%
• Vanguard High Dividend Yield ETF (VYM): Market share - 25%
• SPDR S&P 500 High Dividend ETF (SPYD): Market share - 20%

Expense Ratio:

The expense ratio for SPHD is 0.30%.

Investment Approach and Strategy:

SPHD tracks the S&P 500® High Dividend Low Volatility Index. The ETF invests in the same proportion as the index constituents and aims to replicate the index's performance.

Key Points:

• High dividend yield
• Low volatility
• Diversified portfolio
• Strong track record
• Low expense ratio

Risks:

The main risks associated with SPHD include:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Dividend risk: The ETF's dividend payments can vary depending on the performance of the underlying companies.
• Interest rate risk: Rising interest rates can make high-dividend stocks less attractive.

Who Should Consider Investing:

SPHD is suitable for investors who:

• Seek a high level of current income
• Want to minimize volatility
• Have a long-term investment horizon

Evaluation of SPHD's Fundamentals using an AI-based rating system:

Fundamental Rating Based on AI: 8.5/10

SPHD receives a high rating due to its strong track record, low expense ratio, and exposure to a diversified portfolio of high-quality stocks. The ETF's exposure to low-volatility stocks also helps to mitigate risk. However, investors should be aware of the potential risks associated with investing in high-dividend stocks.

Disclaimer:

This information should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.