Invesco S&P 500 High Beta ETF (SPHB)
ARCA ARCA Primary 
XBER 
SPHB: Don't Chase High-Beta Right Now
SPHB has surged 45% since mid-April, outperforming quality-focused ETFs, but this high-beta rally may be short-lived. Despite strong technical momentum and a breakout above resistance, bearish seasonality in August-September warrants caution. SPHB trades at a discount to the S&P 500 and is heavily weighted in Information Technology, but carries high volatility risk.
Trade Hopes Boost Wall Street: ETFs to Tap
U.S. stock markets climbed on Thursday, thanks to President Trump's announcement of a new trade agreement with the UK and his upbeat comments on future negotiations with China. The Nasdaq Composite gained about 1%, while both the S&P 500 and the Dow Jones Industrial Average rose roughly 0.6%.
SPHB: Look Elsewhere If Looking For Volatility
SPHB, an Invesco ETF, targets the most volatile 100 S&P 500 stocks but has underperformed compared to other low-fee ETFs like SPY and SPUU. The fund's portfolio somewhat resembles the S&P 500 but with higher weightings in technology and industrials, yet it hasn't driven significant gains. For U.S. market recovery, SPHB isn't the best option; SPY or SPUU offer better performance and lower fees.
SPHB: Not The Right Time For High Beta Equities
SPHB aggregates high beta equities, investing in the 100 S&P 500 stocks with the highest market sensitivity, rebalanced quarterly. High beta stocks underperformed in 2024 despite a robust equity market, highlighting the need for specific catalysts for these stocks to excel. High beta names perform best in rebound years following significant market sell-offs, often posting returns close to +30%.
SPHB: Not The Best Time To Own Right Now
SPHB, with a high beta strategy, targets 100 volatile S&P 500 stocks, offering potential short-term outperformance but higher downside risk. The fund's expense ratio is 0.25%, higher than similar ETFs, and it rebalances quarterly. SPHB rebounds faster post-market corrections but lags the S&P 500 in long-term returns due to its high beta stock selection.
SPHB: A Solid Choice For Riding The Recovery Wave
SPHB tracks the S&P 500 High Beta Index, providing exposure to high-beta stocks in the S&P 500. High-beta stocks can amplify gains and losses, so exposure to them is suitable for only under certain circumstances. Right now, investing in this fund is too risky, but it can have its use when the market is in recovery, so familiarizing yourself with it is a good idea.
