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

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is managed by Invesco, and has been able to amass over $3.41 billion, which makes it one of the larger 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 Expenses

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Operating expenses on an annual basis are 0.30% for this ETF, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 4.54%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Representing 21.5% of the portfolio, the fund has heaviest allocation to the Real Estate sector; Financials and Consumer Staples round out the top three.

When you look at individual holdings, Healthpeak Properties Inc (DOC) accounts for about 3.66% of the fund's total assets, followed by Altria Group Inc (MO) and Kraft Heinz Co/the (KHC).

Its top 10 holdings account for approximately 27.32% of SPHD's total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 High Dividend Low Volatility ETF return is roughly 12.63% so far, and is up about 14.34% over the last 12 months (as of 08/10/2026). SPHD has traded between $46.96 $53.55 in this past 52-week period.

The ETF has a beta of 0.60 and standard deviation of 12.82% for the trailing three-year period, making it a medium risk choice in the space. With about 60 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco 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 Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $105.96 billion in assets, Vanguard Morningstar Value ETF has $191.54 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.

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 Value

Bottom Line

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

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Invesco S&P 500 High Dividend Low Volatility ETF (SPHD): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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