Invesco Low-Volatility ETF Tops $7.8B AUM with 0.74 Sharpe Ratio
Invesco S&P 500 Low Volatility ETF selects the 100 least-volatile S&P 500 stocks weighted inversely to volatility and has amassed $7.8 billion in assets. It boasts a 0.74 Sharpe ratio, averages double-digit annual returns since inception, carries a 0.25% expense ratio and yields over 2%.
1. ETF Strategy and Selection
The Invesco S&P 500 Low Volatility ETF (SPLV) targets the 100 least-volatile constituents of the S&P 500, weighting holdings inversely to their volatility metrics to provide defensive exposure.
2. Performance Metrics and AUM
SPLV has generated double-digit annual returns since inception and maintains a Sharpe ratio of 0.74, while assets under management recently surpassed $7.8 billion, indicating strong investor interest in low-volatility strategies.
3. Expenses and Dividend Yield
The fund charges a 0.25% expense ratio, higher than broad-market ETFs, but offers a dividend yield above 2%, which supports its risk-adjusted return profile for yield-seeking investors.