XSHD
ETF
Invesco S&P SmallCap High Dividend Low Volatility ETF
Equity
US Equity
Ticker: SPHD
Invesco S&P 500® High Dividend Low Volatility ETF
Explore the potential benefits of combining high dividend and low volatility strategies.
Why invest in SPHD?
The Invesco S&P 500 High Dividend Low Volatility ETF is designed for investors seeking income from companies in the S&P 500® Index using a low volatility screen in an effort to avoid “value traps” or reduce the volatility in high dividend yield stocks.
High level of equity income potential
SPHD can be used to generate dividend income while aiming to mitigate risk by screening for low volatility equities.
Potentially lower risk
SPHD seeks to avoid the increased volatility and greater drawdown potential of high yielding stocks.
Avoidance of “value traps”
SPHD is designed to remove high yielding companies that are more volatile and potentially distressed.
SPHD is based on the S&P 500 Low Volatility High Dividend Index
SPHD takes the S&P 500 Index and applies a high dividend and low volatility screen to narrow down a subset of stocks with the highest dividend yield and lowest realized volatility, then weights each stock based on dividend yield.
For illustrative purposes only.
The index constituents are weighted by trailing 12-month dividend yield. At each rebalancing, modifications are made to stock weights to ensure diversification across individual stocks and sectors. The weight for each index constituent is constrained between 0.05% and 3.0%, and the weight of each GICS sector is capped at 25%.
The fund and the underlying index are reconstituted semi-annually, effective after the close of the last business day of January and July and are rebalanced quarterly, effective after the close of the last business day of January, April, July, and October.
FAQ
Get timely answers to important questions regarding this product.
SPHD typically makes dividend distributions monthly.
The main benefits of dividend ETFs are that they may potentially provide investors with a higher level of equity income and stability, as more of the return comes from current income rather than future profit growth.
SPHD’s underlying index, the S&P 500 Low Volatility High Dividend Index, is rebalanced and reconstituted semi-annually, in January and July.
SPHD tracks the S&P 500 Low Volatility High Dividend Index, which measures the performance of the 50 least-volatile high dividend-yielding stocks in the S&P 500 Index.
SPHD can be used in equity portfolios for investors seeking high dividend income with potentially lower volatility. By screening for both yield and volatility, SPHD may help reduce the volatility associated with dividend strategies.
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Footnotes
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The Invesco S&P 500® High Dividend Low Volatility ETF seeks to track the investment results (before fees and expenses) of the S&P 500® Low Volatility High Dividend Index.
