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.

Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Invesco S&P 500 Low Volatility ETF (SPLV), a passively managed exchange traded fund launched on 05/05/2011.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Invesco S&P 500 Low Volatility ETF (SPLV) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.

VettaFi's Head of Research Todd Rosenbluth discussed the Invesco S&P 500 Low Volatility ETF (SPLV) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Innovative ETFs Channel.

For investors seeking momentum, Invesco S&P 500 Low Volatility ETF SPLV is probably on the radar. The fund just hit a 52-week high and is up 20.2% from its 52-week low price of $57.17/share.

Defensive sectors have led the market in the past month, with high-momentum equities giving back gains amid US economic growth concerns and international volatility. SPLV has underperformed the S&P 500 since the lows in October last year, and now features a P/E near 20. Amid steadier and lower interest rates today and with significant technical tailwinds, I feel confident upgrading 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.