SPHD

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is an exchange-traded fund that seeks to track the performance of an index composed of S&P 500 companies selected for high dividend yield and low historical volatility. The ETF is managed by Invesco Ltd. and trades under the ticker SPHD on the NYSE Arca.

Classified as a U.S. equity ETF focused on dividend income and reduced volatility, SPHD aims to reflect, before fees and expenses, the performance of the stocks included in its benchmark index. To achieve this objective, the fund follows a passive management strategy, maintaining a portfolio designed to replicate the composition and weighting of the index without discretionary allocation decisions.

SPHD’s benchmark index consists of S&P 500 stocks filtered based on elevated dividend yield and lower return volatility. The index constituents are weighted by dividend yield, and the index undergoes periodic reviews to rebalance the portfolio and replace eligible securities.

Diversification and sector exposure

SPHD provides exposure to U.S. companies with consistent dividend profiles and a history of lower volatility, with sector diversification that includes, among others:

• Consumer staples.

• Utilities.

• Health care.

• Financials.

• Industrials.

• Information technology.

This composition results in a portfolio focused on recurring income generation and reduced price fluctuations compared to ETFs that track the broader S&P 500 index.

Structure and costs

Shares of SPHD are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a competitive expense ratio, typical of dividend-focused ETFs, and does not charge a performance fee. SPHD makes regular income distributions, derived from dividends paid by the companies held in its portfolio. The ETF has a single share class and trades exclusively under the ticker SPHD.

History and evolution of the ETF

The Invesco S&P 500 High Dividend Low Volatility ETF was launched in 2012, amid growing demand for strategies that combine dividend income with lower volatility relative to the broader equity market.

Since inception, SPHD has been adopted by investors seeking more stable income streams, particularly during periods of market uncertainty, while maintaining consistent exposure to its underlying index.

Between 2020 and 2024, the ETF reflected fluctuations in U.S. equity markets driven by events such as the COVID-19 pandemic, monetary policy cycles, and shifting investor demand for income, reinforcing its role as a dividend-oriented strategy with reduced volatility.