The Invesco S&P 500 High Dividend Low Volatility UCITS ETF (HDLV) is an Ireland-domiciled equity ETF managed by Invesco.

The fund seeks to track the S&P 500 Low Volatility High Dividend Index, a benchmark comprising S&P 500 companies selected based on a combination of high dividend yield and lower historical volatility.

The index methodology follows two main selection steps: first, the 75 S&P 500 stocks with the highest trailing 12-month dividend yields are selected. From this group, the 50 stocks with the lowest realized volatility over the previous 252 trading days are included in the index. 

Composition / Exposure Profile

HDLV holds companies across different sectors of the U.S. economy, which may include:

• Consumer staples.

• Real estate.

• Utilities.

• Financials.

• Energy.

• Communication services.

• Health care.

• Industrials.

• Consumer discretionary.

Geographic exposure is concentrated in the United States, as the selection universe consists of S&P 500 constituents. Because the methodology emphasizes high dividend yield and lower volatility, HDLV's composition can differ significantly from that of the traditional S&P 500. 

Sectors containing mature, higher-dividend-paying companies may receive larger weights, while areas with lower dividend yields may have smaller allocations or be absent from the portfolio during certain periods.

Structure and Costs

The fund operates under the UCITS framework, is domiciled in Ireland, and uses physical replication to track its benchmark. HDLV has ongoing charges of 0.30% per year.

The share class follows an accumulating income policy. Dividends received from portfolio companies are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The Invesco S&P 500 High Dividend Low Volatility UCITS ETF was launched in 2015 to provide exposure to a strategy combining high dividend yield and lower volatility within the S&P 500 universe.

Since its launch, the fund has maintained a passive strategy linked to the S&P 500 Low Volatility High Dividend Index, selecting U.S. companies according to the criteria established by the benchmark methodology.

Throughout its history, HDLV's performance has reflected both movements in the U.S. equity market and the specific characteristics of its strategy, including its exposure to companies with higher dividend yields and lower historical volatility.

Additional Information

Invesco S&P 500 High Dividend Low Volatility UCITS ETF (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $379.55 million.

Over the past 12 months, Invesco S&P 500 High Dividend Low Volatility UCITS ETF recorded a return of -1.31%, with its price trading between $35.09 and $40.39 during the same period.

The ETF is traded under the ticker HDLV.