As for returns, the ETF is down about 8.8% yr up to now by means of Aug. 31 however has a five-year annualized return of 9.8%. That’s lower than the S&P 500 in each instances, however that is an ETF that prioritizes dividend earnings over return — and given its make-up of Dividend Aristocrats, it’s poised to ship on its mission.
Invesco S&P 500 Excessive Dividend Low Volatility ETF: Constant month-to-month payouts
The Invesco S&P 500 Excessive Dividend Low Volatility ETF is an effective dividend ETF for these instances. Traders who’re cautious of excessive market volatility and dividend uncertainty can relaxation assured that this ETF will ship constant outcomes. Because the title suggests, the ETF tracks the S&P 500 Excessive Dividend Low Volatility Index, which is comprised of simply 50 shares which might be deemed the least unstable excessive dividend-yielding shares within the S&P 500. It makes use of worth volatility as a display screen to keep away from dividend traps, that are shares with dividends that look good however should not sustainable. Shares that fall into this lure are sometimes extra unstable.
The index appears on the high 75 dividend producing shares within the S&P 500 after which takes the 50 from that quantity which have the bottom volatility. Presently, the highest 10 holdings are Iron Mountain, Century Hyperlink, Altria Group, Dow, H&R Block, Vornado Realty Belief, PPL Corp., ExxonMobil, Philip Morris, and Huntington Bancshares. Utilities make up 16.9% of the portfolio, adopted by actual property (14.1%), data know-how (12.5%), and supplies (11.9%).