PowerShares S&P 500 High Price, Forecast, Insider, Ratings, Fundamentals & Signals

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), a passively managed exchange traded fund launched on 10/18/2012.

As the earnings season gets underway on Wall Street, the euphoria of rapid gains is starting to wane. Economic uncertainties, geopolitical tensions and the ever-present threat of inflation have left investors feeling like they're navigating a constant financial storm.

The Invesco S&P 500 High Dividend Low Volatility ETF provides a monthly stream of passive income with low volatility. SPHD has a decent dividend yield of 4.37%, but its dividend growth has been low compared to other options. Other ETFs, such as the Schwab US Dividend Equity ETF, have higher returns and dividend growth rates than SPHD.

The Invesco S&P 500 High Dividend Low Volatility ETF focuses on high dividend-paying stocks that are further filtered based on the realized volatility levels. While the current dividend yield of 4.3% in combination with low vol-focused strategy might indicate an enticing investment case, there are several drawbacks of SPHD that make it less attractive. In this article, I elaborate on SPHD's stock selection process and outline several reasons why I would not commit my capital here.

After a sturdy run so far this year, Wall Street started to waver in mid-March, following the release of hot U.S. inflation data and the rise in bond yields.

The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) made its debut on 10/18/2012, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.

Dividend stocks, including REITs and utilities, have underperformed in recent years. Rising interest rates and increasing costs of capital have contributed to the underperformance. The beginnings of a strong dividend stock rally may have just begun on the back of some very good news.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is a passively managed exchange traded fund launched on 10/18/2012.

Invesco S&P 500 High Dividend Low Volatility ETF has underperformed in the last year, five years, and ten years compared to the S&P 500 index. The US stock market is expected to continue its bull run in 2024, driven by tech stocks, healthcare, and industrial sectors. SPHD is likely to underperform in a bullish market due to its focus on low volatility stocks, particularly in the utility and consumer defensive sectors. Investors may find better risk-adjusted returns in dividend growth ETFs.

Dividend investors should look beyond the S&P 500's largest stocks for higher yields, and focus in smaller sectors like Utilities and Real Estate. The Invesco S&P 500® High Dividend Low Volatility ETF is attractively priced and had a record high total payout last year. The SPHD ETF has a diverse and defensive portfolio, low expense ratio, and positive technical indicators, making it a buy-rated ETF in my view.