1/21/2020
Invesco S&P 500® High Dividend Low Volatility ETF (NYSE: SPHD)
What's the difference between SPHD and SDY? It's more conservative and hasn't performed as well. It's run by a different company. Expense ratio is 0.3% vs 0.35%. 2% Higher yield. Allegedly Ray Dalio has some. So basically more cash flow and less appreciation.
Price at write-up $43.93 (-0.23%, 4.17%, 8.5%)
Indexes (30, 180, 365 day)
VIX: 12.86 (12.61, 14.55, 18.53)
TED: 0.30 (0.38, 0.24, 0.38)
S&P500: 3321 (3.09%, 11.56%, 25.68%)
Fed: 1.75 (1.75, 2.38, 2.5)
Reported Inflation rate: 2.3% (2019 1.8%)
Suspected inflation rate: 3.5% (2019 5.68%)
Valuation Ratios
Target: Market.
A basket of Large-cap value stocks that are theoretically low volatility and high yielding.
My Thoughts
You could do worse. The yield is 2% higher than SDY, but the capital growth is less. It is an index fund with "high" dividends with lower volatility and lower risk than HYD (same dividend). So this would be a much better choice than HYD. And if those are your guiding factors PTY might be a better choice.
Invesco S&P 500® High Dividend Low Volatility ETF (NYSE: SPHD)
What's the difference between SPHD and SDY? It's more conservative and hasn't performed as well. It's run by a different company. Expense ratio is 0.3% vs 0.35%. 2% Higher yield. Allegedly Ray Dalio has some. So basically more cash flow and less appreciation.
Price at write-up $43.93 (-0.23%, 4.17%, 8.5%)
Indexes (30, 180, 365 day)
VIX: 12.86 (12.61, 14.55, 18.53)
TED: 0.30 (0.38, 0.24, 0.38)
S&P500: 3321 (3.09%, 11.56%, 25.68%)
Fed: 1.75 (1.75, 2.38, 2.5)
Reported Inflation rate: 2.3% (2019 1.8%)
Suspected inflation rate: 3.5% (2019 5.68%)
Valuation Ratios
| NAV | 44.35 |
| Premium | -0.95% |
| Gross Expense Ratio | 0.30% |
| Net Expense Ratio | 0.30% |
| Total Assets | $4B |
| Dividend | 4.07% |
| Beta | 0.77 |
| Cyclical | 44.65% |
| Defensive | 31.05% |
| Sensitive | 24.30% |
Target: Market.
A basket of Large-cap value stocks that are theoretically low volatility and high yielding.
My Thoughts
You could do worse. The yield is 2% higher than SDY, but the capital growth is less. It is an index fund with "high" dividends with lower volatility and lower risk than HYD (same dividend). So this would be a much better choice than HYD. And if those are your guiding factors PTY might be a better choice.
Risks
Still moderately correlated with the market.
Conclusion
The risks and expense ratio of PTY is higher, but it also returned 26.25% last year (12% 5yr average). I think for its place, this isn't a bad asset to have. After looking at the due diligence options, I'll probably spread about 2.5% among them. There is a world in which SPHD could be considered a place holder for a good lowish volatility asset, and it might shine there.
Due Diligence - SDY, SPY, PTY, HYI, HIO, HYD
Still moderately correlated with the market.
Conclusion
The risks and expense ratio of PTY is higher, but it also returned 26.25% last year (12% 5yr average). I think for its place, this isn't a bad asset to have. After looking at the due diligence options, I'll probably spread about 2.5% among them. There is a world in which SPHD could be considered a place holder for a good lowish volatility asset, and it might shine there.
Due Diligence - SDY, SPY, PTY, HYI, HIO, HYD
Comments
Post a Comment