Invesco S&P 500 High Dividend Low Volatility ETF SPHD places considerably greater emphasis on yield than risk, which limits its effectiveness. While the fund has tended to hold up better than that benchmark during market downturns, its adjustments to mitigate risk limit upside during market rallies and aren’t strong enough to deliver market-beating risk-adjusted performance over the long term. It warrants a downgrade to a Morningstar Analyst Rating of Neutral from Bronze.
Will SPHD outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SPHD’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the SPHD management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of SPHD’s parent organization’s priorities and whether they’re in line with investors’ interests.