From President Trump's Liberation Day announcements on April 2 and the ensuing market correction, to his 90-day tariff pause announced April 9 and the market's subsequent rebound, investors have been whiplashed with volatility not seen since the onset of the pandemic.
SPLV offers a defensive, low-volatility approach, ideal for uncertain macro conditions and potential market pullbacks despite recent S&P 500 bullishness. The ETF's sector allocation favors utilities, financials, and consumer defensive stocks, resulting in lower valuations than the broader market. Given slowing GDP growth, a cooling labor market, and persistent macro uncertainty, SPLV should deliver superior risk-adjusted returns in the short run.
I rate SPLV a buy, driven by strong momentum in utilities, which are poised for robust demand from AI and EV-driven electricity growth. SPLV's diversified portfolio, with significant exposure to financials, consumer staples, and industrials, supports steady returns and limits downside risk. The ETF offers monthly dividends, a long payout history, and trades at a valuation discount with a low expense ratio, enhancing long-term appeal.
Launched on 05/05/2011, the Invesco S&P 500 Low Volatility ETF (SPLV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The SPLV ETF has outperformed the S&P 500 in 2025, with a 2% gain and 600 basis points of alpha since my 2024 analysis, justifying my hold rating. SPLV's portfolio focuses on low-volatility large-cap stocks, with Financials and Utilities as top sectors, and a low 10.3% in Information Technology. Despite the strong performance, SPLV's high P/E ratio of 21.2x and mixed technical indicators, including RSI momentum, warrant a cautious hold stance.
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.
Launched on 05/05/2011, the Invesco S&P 500 Low Volatility ETF (SPLV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
SPLV offers stability during downturns due to high exposure to defensive sectors, but underperforms long-term due to limited tech exposure and high mid-cap/small-cap stocks. The ETF has an expensive expense ratio of 0.25%, higher than similar funds like iShares MSCI USA Min Vol Factor ETF at 0.15%. SPLV's 16.5% return over two years lags behind the S&P 500's 63.9% and other similar funds, primarily due to its portfolio composition.
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.
Equities markets show signs of overvaluation, with the equities risk premia turning negative for the first time since 2002. Invesco S&P 500® Low Volatility ETF is a defensive fund investing in 100 low volatility stocks from the S&P 500. SPLV aims to reduce drawdowns, evidenced by its smaller losses in 2022 compared to the S&P 500.
SPLV offers exposure to low-volatility stocks within the S&P 500, emphasizing financial services, consumer staples, and utilities, with minimal tech sector exposure. Despite its conservative portfolio and low beta, SPLV has underperformed both the S&P 500 and its low-volatility ETF peers in bullish markets. SPLV's low valuation and defensive nature make it suitable for bearish market conditions but less attractive in a strong economy.
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.