Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 500 Low Volatility ETF (SPLV) is a passively managed exchange traded fund launched on May 5, 2011.
Key Points in This Article: The stock market is rising despite growing risks, including falling durable goods orders, uneven earnings, upcoming tech reports, global tensions, and political friction, signaling potential volatility.
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.