![]() LVHD starts with a universe of the 3,000 largest U.S. The ETF invests in roughly 50 to 100 stocks selected because of their lower volatility, as well as their ability to generate income. The Franklin Low Volatility High Dividend ETF ( LVHD, $38.12) has roughly the same thrust as SPLV, but with an added focus on dividends. Assets under management: $945.0 million.Learn more about SPLV at the Invesco provider site.įranklin Low Volatility High Dividend ETF Top individual holdings include consumer staples giants Coca-Cola ( KO) and PepsiCo ( PEP), and New York utility Consolidated Edison ( ED). The portfolio is bound to change over time depending on which parts of the market are more volatile than others, but for now, it's unsurprisingly heavy in utility stocks (26%) and consumer staples (22%) – two defensive, high-yielding sectors. And during the current bear market, the fund has been a relative champ, down less than 5% on a total-return basis (price plus dividends) vs. Take June 2015 to June 2016, when the market's roller-coaster movement generated a marginally negative return SPLV was up by nearly 9%. In fact, during the quick COVID bear market, this low-volatility ETF underperformed the S&P 500 by 2 percentage points.īut Invesco's ETF does tend to do pretty well during longer periods of tumult. This doesn't guarantee SPLV will outperform during a market shock. SPLV has a beta of 0.74, which implies the fund is roughly 26% less volatile than the broader market. The benchmark here is the S&P 500, and the benchmark will always have a beta of 1. ![]() One popular way to measure volatility is called "beta," which tracks a security's volatility compared to some benchmark. It then assigns weights to each stock based on its volatility (well, lack thereof). The Invesco S&P 500 Low Volatility ETF ( SPLV, $63.61) is a pretty straightforward fund that tracks the S&P 500 Low Volatility Index, which is composed of the 100 S&P 500 components with the lowest realized volatility over the past 12 months. The objective is pretty straightforward: Invest in stocks with low volatility, which should limit downside during a down market. One of the most popular types of funds for a bear market is low-volatility ETFs.
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