Invesco’s low-volatility dividend ETF underperformed the S&P 500 by 56 percentage points in total returns since 2019.
The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) posted a 36% total return over the past five years, equating to a 6% annualized gain. The SPDR S&P 500 ETF Trust (SPY) delivered 92% in the same period, nearly doubling SPHD’s performance despite reinvested dividends.
SPHD’s strategy targets high-dividend, low-volatility stocks, excluding tech and favoring utilities, REITs, and consumer staples. Its 4.5% monthly yield and 0.30% expense ratio lagged the Schwab U.S. Dividend Equity ETF (SCHD), which outperformed by 17% cumulatively at a 0.06% fee. The fund’s design cushioned losses in 2022 but limited upside in bull markets.
The gap highlights trade-offs between income stability and growth, with SPHD appealing primarily to retirees seeking predictable cash flow rather than wealth accumulation.