SPLV ETF

The stock markets appear to be overvalued, as the equities risk premium has gone negative for the first time since 2002. The Invesco S&P 500® Low Volatility ETF is a defensive investment that focuses on 100 low volatility stocks from the S&P 500. SPLV seeks to minimize losses, which is shown by its smaller declines in 2022 compared to the S&P 500.

If you want to gain wide exposure to the Large Cap Blend part of the US stock market, you might want to look at the Invesco S&P 500 Low Volatility ETF (SPLV). This is a passively managed exchange-traded fund that started on May 5, 2011.

In this episode of the "ETF of the Week" podcast, Todd Rosenbluth, the Head of Research at VettaFi, spoke with Chuck Jaffe from "Money Life" about the Invesco S&P 500 Low Volatility ETF (SPLV). They covered various topics related to the fund to help investors gain a better insight into the ETF.

Todd Rosenbluth, the Head of Research at VettaFi, talked about the Invesco S&P 500 Low Volatility ETF (SPLV) on this week's "ETF of the Week" podcast with Chuck Jaffe from "Money Life." To find more news, insights, and strategies, check out the Innovative ETFs Channel.

Investors looking for momentum might be interested in the Invesco S&P 500 Low Volatility ETF (SPLV). The fund recently reached a 52-week high and has increased by 20.2% from its lowest price of $57.17 per share over the past year.

In the last month, defensive sectors have outperformed the market, while high-momentum stocks have lost some of their gains due to worries about US economic growth and global instability. Since reaching its lowest point in October last year, SPLV has not performed as well as the S&P 500 and currently has a price-to-earnings ratio close to 20. Given the more stable and lower interest rates now, along with strong technical support, I believe it's a good time to upgrade SPLV to a hold.

SPLV is one of the most established U.S. large-cap low-volatility ETFs on the market. It has a moderate 0.25% expense and $7.10 billion in assets under management. The ETF appeals to risk-averse investors by selecting the 100 least-volatile S&P 500 Index stocks each quarter. Currently, SPLV overweights Financials, Consumer Staples, and Industrials. SPLV's current portfolio has a 0.75 five-year beta, the eighth-lowest among all large-cap blend ETFs. Unfortunately, it lacks appropriate quality, leaving investors vulnerable in "flight to safety" environments.

An often-cited downside of investing in defensive sectors, such as consumer staples and utilities, is that stocks in those groups often command above-average valuation due to their attractive dividend yields and below-average volatility traits. However, the Invesco S&P 500 Low Volatility ETF (SPLV) isn't richly valued.

If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Invesco S&P 500 Low Volatility ETF (SPLV), a passively managed exchange traded fund launched on 05/05/2011.