What Is SPHD? Invesco S&P 500 High Dividend Low Volatility ETF

SPHD is the Invesco S&P 500 High Dividend Low Volatility ETF. It tracks the S&P 500 Low Volatility High Dividend Index, which starts from the S&P 500, keeps the 75 highest dividend yielders, and then narrows to the 50 names with the lowest realized volatility over the past year. Each holding is weighted by its trailing dividend yield, so the biggest yielders carry the largest positions.

The result is a portfolio of roughly 50 defensive, income-heavy large caps. SPHD launched in October 2012, charges a 0.30% expense ratio, and yields around 4.6%. It is designed for investors who want more income than the broad market pays, along with a smoother ride than a pure high-yield screen would deliver.

Approximate weights as of mid-2026; refresh quarterly from Invesco's fund page. Each ticker links to its individual stock guide in Walnut.

SPHD concentrates in utilities, consumer staples, real estate, energy, and communication services, the sectors that most often combine high yield with low volatility. Recent top holdings have included Healthpeak Properties, Altria, Verizon, Franklin Resources, and Kraft Heinz, with additional weight in Amcor, ONEOK, Pfizer, Kimco Realty, and Realty Income.

The fund holds around 50 to 60 stocks and stays reasonably diversified at the single-name level, with the top 10 making up roughly 30% of assets. The bigger concentration risk is at the sector level: because defensive, high-yield sectors dominate, SPHD behaves quite differently from the tech-heavy S&P 500.

SPHD, SPYD, and SCHD are three popular ways to buy US dividend income, but they screen differently. SPYD equally weights the 80 highest yielders in the S&P 500 at 0.07% with no volatility filter, so it tends to yield a bit more but move more sharply. SCHD screens for dividend quality and consistency at just 0.06%, favoring durable dividend growers.

SPHD sits between them in spirit: it reaches for high yield like SPYD but adds a low-volatility screen and yield weighting, at a higher 0.30% fee. If you want the steadiest, most defensive high-yield tilt, SPHD is built for that; if minimizing cost or emphasizing dividend growth matters more, SPYD or SCHD may fit better.

SPHD's return profile is shaped by its defensive, rate-sensitive holdings. In calm or falling markets it has often held up better than the broad index, while in strong growth-led rallies it tends to lag because it owns little in the mega-cap technology names driving those moves. Its utility and REIT weight also makes it sensitive to interest rates.

Investors typically hold SPHD for income and lower volatility rather than for beating the S&P 500 on total return. Its outlook depends heavily on where rates and defensive sectors head, and on whether the market rewards yield and stability or growth. Past performance does not predict future results.

SPHD may appeal to investors who want an above-market, monthly income stream from large-cap US stocks and are comfortable with a defensive, utility-and-staples-heavy tilt. It is commonly used as an income-focused satellite alongside a broad core fund rather than as a standalone total-market holding, and its 0.30% fee is worth weighing against cheaper peers.

Walnut is not an investment adviser, and this is not a recommendation to buy or sell SPHD. Whether it fits depends on your income needs, time horizon, tax situation, and tolerance for sector concentration and rate sensitivity. Review the current holdings, yield, and fee, and consider how SPHD would sit next to what you already own.

SPHD trades on NYSE Arca like any stock, so you can buy it through Robinhood, Fidelity, Schwab, Public, or most other brokers during market hours. Many brokers support fractional shares, letting you invest a set dollar amount rather than buying a whole share, which is handy for a fund whose price sits in the low tens of dollars.

If you connect your brokerage to Walnut, you can track SPHD inside a thematic basket, set a target weight, and see how it fits with your other positions over time. Walnut keeps trade execution at your broker and focuses on helping you understand and monitor what you own.

SPHD suits investors who want an above-market income stream from large-cap US stocks with a defensive, lower-volatility tilt. At 0.30% it costs more than SPYD (0.07%) or SCHD (0.06%), and its heavy utility and staples weighting can lag in growth-led markets. Most use it as an income-focused satellite, not a total-market core.

Whether SPHD is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is SPHD a buy?

SPHD yields ~4.6% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see SPHD dividend: yield and schedule.