If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), a passively managed exchange traded fund launched on October 18, 2012.

The fund is sponsored by Invesco. It has amassed assets over $3.37 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.3%, putting it on par with most peer products in the space.

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

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Real Estate sector -- about 21.8% of the portfolio. Financials and Consumer Staples round out the top three.

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

The top 10 holdings account for about 27.32% of total assets under management.

Performance and Risk

SPHD seeks to match the performance of the S&P 500 Low Volatility High Dividend Index before fees and expenses. 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.

The ETF has gained about 12.57% so far this year and is up about 15.55% in the last one year (as of 08/04/2026). In the past 52-week period, it has traded between $46.96 and $53.55.

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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPHD is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $104.14 billion in assets, Vanguard Value Index Fund ETF Shares has $188.51 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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 Zacks ETF Center.

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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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