SPHD’s High Dividend Low Volatility Promise Has Returned Just 6 Percent Annualized While the S&P 500 Doubled It

1 hour ago 1

Omor Ibne Ehsan

Tue, May 26, 2026 astatine 10:30 AM CDT 4 min read

Quick Read

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) returned 36% implicit 5 years versus 92% for the SPDR S&P 500 ETF Trust (SPY), portion the Schwab U.S. Dividend Equity ETF (SCHD) bushed SPHD by 17% cumulatively astatine one-fifth the disbursal ratio (0.06% versus 0.30%), though SPHD’s 4.5% monthly output and debased volatility plan efficaciously cushion antiaircraft markets similar 2022.
SPHD’s mechanical methodology screens for high-dividend, low-volatility stocks that deficiency tech vulnerability and ore successful slow-growth utilities, REITs, and user staples, making it suitable lone for retirees needing predictable monthly currency alternatively than investors inactive accumulating wealth.

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The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) sells the astir appealing transportation successful income investing: instrumentality the highest yielders successful the S&P 500, filter for the calmest fifty, cod monthly checks.

Over the past 5 years that transportation delivered 36% successful total, oregon astir 6% annualized. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) returned 92% dividends reinvested implicit the aforesaid window. SPHD holders made money. They made astir fractional arsenic much, and the spread matters much than the output does.

How the money picks holdings

The methodology is mechanical. The scale screens the S&P 500 for the 75 highest-dividend names, keeps the 50 with the lowest realized volatility, past weights by yield. That series tilts the portfolio toward utilities, REITs, user staples, and telecoms, companies whose payouts are reliable due to the fact that their maturation is slow.

Altria (NYSE:MO) is the largest holding, followed by Verizon (NYSE:VZ), and Healthpeak (NYSE:DOC), among others. All of these companies person precise beardown currency flow.

On a $100,000 position, the 5-year show quality is similar comparing $136,000 and $192,000. This is simply a monolithic shortfall earlier immoderate compounding nuance. The 4.5% organisation output felt similar a triumph each month. It did not adjacent the gap.

The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) charges 0.06% versus SPHD's 0.30%, screens for dividend growers alternatively than conscionable precocious yielders, and returned 53% implicit the aforesaid 5 years. SCHD trailed SPY too, due to the fact that immoderate dividend filter has successful this cycle, but it bushed SPHD by astir 17% cumulatively astatine one-fifth the disbursal ratio.

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