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Low Volatility ETF (SPLV) Hits New 52-Week High

ByZacks Investment Research
Published 02/14/2019, 12:30 AM
Updated 07/09/2023, 06:31 AM
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For investors seeking momentum, Invesco S&P 500 Low Volatility ETF SPLV is probably on radar now. The fund just hit a 52-week high and is up 15% from its 52-week low price of $44.16 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

SPLV in Focus

This ETF provides exposure to stocks with the lowest realized volatility over the past 12 months. It has a well-diversified portfolio with key holdings in utilities, real estate, and financials. The fund charges 25 bps in annual fees (read: all the Large Cap Blend ETFs here).

Why the Move?

The low volatility corner of the broader market has been an area to watch lately given the return of market volatility due to U.S.-China trade deal and deceleration in earnings growth. This is because these products have the potential to outpace the broader market in bearish conditions or in an uncertain environment, providing significant protection to the portfolio. The low volatility funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these are allocated primarily to defensive sectors that usually have a higher distribution yield than the broader markets.

More Gains Ahead?

Currently, SPLV has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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Invesco S&P 500 Low Volatility ETF (SPLV): ETF Research Reports

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