Best PowerShares ETFs: S&P 500 High Dividend Low Volatility Portfolio (SPHD)
Speaking of income, don’t forget the PowerShares S&P 500 High Dividend Low Volatility Portfolio (NYSEARCA:SPHD).
This ETF debuted nearly five years ago, putting it at the forefront of a popular concept: the combination of the low-volatility factor and high-yielding dividend stocks.
This PowerShares ETF tracks the S&P 500 Low Volatility High Dividend Index, which holds the 50 S&P 500 members that sport historically favorable low volatility traits and high dividend yields. Due to its high-yield objective, SPHD allocates a combined 54.5% of its weight to real estate, utilities and consumer staples stocks.
Investors are compensated for the interest-rate risk associated with those sectors with a 12-month distribution rate of 3.7%, and the fund’s beta is a mere 0.6 (anything less than 1 is considered less volatile than the broader market). Adding to the case for this PowerShares ETF is that it delivers its dividend on a monthly basis.
As of this writing, Todd Shriber was long SPHD.