SPHD: INVESCO S&P 500 HIGH DIVIDEND LOW VOLATILITY ETF
ETF Education Report: INVESCO S&P 500 HIGH DIVIDEND LOW VOLATILITY ETF (SPHD)
What this ETF is trying to do
The SPHD ETF is designed to focus on companies that pay high dividends and tend to have lower volatility. This means the fund looks for stocks that provide regular cash payments and generally do not experience massive, sudden price swings.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the price change plus any cash distributions received).
Based on the data provided:
• Year-to-Date (YTD): The price return is approximately 4.65%. However, the total return is higher at approximately 8.17%.
• One-Year: The price return was approximately 2.22%, while the total return was approximately 7.34%.
• Three-Year: The price return was approximately 23.35%, and the total return was approximately 39.32%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $49.14. The current price is $50.23.
Income and distribution explanation
This ETF is known for providing cash to investors through distributions. The distribution yield is approximately 4.86%. This number describes the cash payments relative to the current ETF price. These distributions usually happen monthly, with 12 payouts recorded over the last year.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). If an ETF's share price falls, it does not always mean NAV erosion is happening.
For SPHD, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are the top holdings in this ETF (note that this is a partial list):
• Pfizer Inc (3.79%)
• Verizon Communications Inc (3.37%)
• The Kraft Heinz Co (2.89%)
• General Mills Inc (2.87%)
• VICI Properties Inc (2.85%)
• AT&T Inc (2.80%)
• Altria Group Inc (2.71%)
• Healthpeak Properties Inc (2.53%)
• Comcast Corp Class A (2.46%)
• Prudential Financial Inc (2.40%)
Pros
• The fund has a history of positive total returns over one, three, and five-year periods.
• It provides regular monthly cash distributions.
• The erosion-risk measurements suggest a stable profile.
Cons
• The price return (the change in share price) is often lower than the total return, meaning much of the value comes from distributions rather than just price increases.
Beginner takeaway
When looking at SPHD, it is helpful to distinguish between the share price and the cash distributions. Investors interested in income often look at the distribution yield, but they should also watch the total return to see how the investment performs overall.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PFIZER INC | PFE | 3.72% |
| 2 | VERIZON COMMUNICATIONS INC | VZ | 3.37% |
| 3 | GENERAL MILLS INC | GIS | 2.84% |
| 4 | AT&T INC | T | 2.81% |
| 5 | VICI PROPERTIES INC ORDINARY SHARES | VICI | 2.81% |
| 6 | ALTRIA GROUP INC | MO | 2.80% |
| 7 | THE KRAFT HEINZ CO | KHC | 2.79% |
| 8 | CROWN CASTLE INC | CCI | 2.47% |
| 9 | PRUDENTIAL FINANCIAL INC | PRU | 2.38% |
| 10 | HEALTHPEAK PROPERTIES INC | DOC | 2.37% |