SPHB: INVESCO S&P 500 HIGH BETA ETF
What this ETF is trying to do
The INVESCO S&P 500 HIGH BETA ETF (SPHB) is an exchange-traded fund designed to track a specific strategy within the S&P 500. While the specific investment goal is tied to "high beta" stocks, it focuses on a selection of companies from the broader S&P 500 index. Based on its top holdings, the fund has significant exposure to technology and semiconductor companies.
What the numbers show
The data shows that SPHB has experienced significant growth in its share price over various timeframes.
• Year-to-Date (YTD): The price return is approximately 34.06%. When including distributions, the YTD total return is approximately 34.61%.
• One-Year: The one-year price return is approximately 38.64%. The one-year total return is approximately 39.43%.
• Three-Year: The three-year price return is approximately 126.11%. The three-year total return is approximately 131.00%.
To put this in perspective, the current price is $156.81. The estimated price from roughly one year ago was approximately $113.11.
Income and distribution explanation
SPHB provides cash distributions to investors. The distribution yield is approximately 0.48%. This means the annual cash payments represent about 0.48% of the current share price. The fund usually pays these distributions on a quarterly basis, with 4 payments recorded over the last 12 months.
It is important to remember that a distribution yield is not the same as total return. Price return only measures how much the share price moves, while total return includes both price changes and the cash distributions paid out.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Strong Price Growth: The fund has shown high price returns over the last year and three years.
• Positive Total Returns: The total return figures are higher than the price return figures, showing that distributions have added to the overall value.
• Low Erosion Risk: The data indicates no detected price erosion.
Cons
• Lower Yield: The distribution yield of 0.48% is relatively low for investors seeking high levels of regular cash income.
Beginner takeaway
SPHB has shown strong upward movement in its share price over the past year and three years. While it does pay distributions, they are relatively small compared to the overall price growth. Investors should note that while the fund has grown significantly, its performance is based on a specific strategy involving higher-volatility stocks.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SANDISK CORP ORDINARY SHARES | SNDK | 2.88% |
| 2 | MODERNA INC | MRNA | 2.69% |
| 3 | ADVANCED MICRO DEVICES INC | AMD | 2.06% |
| 4 | MICRON TECHNOLOGY INC | MU | 2.05% |
| 5 | SUPER MICRO COMPUTER INC | SMCI | 2.00% |
| 6 | n/a | COIN | 1.97% |
| 7 | MARVELL TECHNOLOGY INC | MRVL | 1.89% |
| 8 | ROBINHOOD MARKETS INC CLASS A | HOOD | 1.85% |
| 9 | INTEL CORP | INTC | 1.71% |
| 10 | LAM RESEARCH CORP | LRCX | 1.66% |