ETF Spotlight on the PowerShares S&P 500 High Dividend Portfolio (NYSEArca: SPHD), part of an ongoing series.
Assets: $141.5 million
Objective: The PowerShares S&P 500 High Dividend Portfolio tries to reflect the performance of the S&P 500 Low Volatility High Dividend Index, which is comprised of 50 stocks taken from the S&P 500 that have historically exhibited high dividend yields and low volatility.
Holdings: Top holdings include FirstEnergy Corp (NYSE FE) 2.9%, Lorillard Inc (NYSE: LO) 2.8%, Exelon Corp (NYSE: EXC) 2.8%, Altria Group (NYSE: MO) 2.6% and Pepco Holdings (NYSE: POM) 2.5%.
What You Should Know:
- Invesco PowerShares sponsors the fund.
- SPHD has a 0.30% expense ratio.
- The fund includes 50 components, and the top ten make up 25.9% of the overall portfolio.
- Sector allocations include consumer discretionary 4.0%, consumer staples 16.4%, energy 9.4%, financials 18.5%, health care 7.2%, industrials 9.3%, information technology 3.9%, materials 1.7%, telecom services 4.5% and utilities 24.1%.
- Market capitalization allocations include large-cap growth 13.9%, large-cap value 54.7%, mid-cap growth 13.0% and mid-cap value 18.4%.
- SPHD is up 5.5% over the past month, up 1.8% in the last three months and up 20.6% year-to-date.
- The ETF is trading 4.7% above its 200-day exponential moving average.
- The fund shows a 3.71% 12-month yield.
- The underlying index is rebalanced and reconstituted in January and July.
Next page: The latest news
The Latest News:
- U.S. stocks weakened Thursday, a day after the Dow Jones Industrial Average hit a record 15,680.35, on Fed tapering speculation due to the better-than-expected economic expansion.
- “What’s hurting U.S. markets is they have just gone up so much, so a pause is very much to be expected here,” David Kelly, chief market strategist at J.P. Morgan Funds, said in a CNBC article.
- GDP increased at a 2.8% annualized rate in the third quarter, compared to estimates of a 2% rise.
- The market will be volatile,” Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co., said in a Bloomberg article. “You had some good economic news today and we’ll see what the payrolls numbers are tomorrow. The fear is that with better-than-expected economic numbers, tapering will commence sooner rather than later.”
PowerShares S&P 500 High Dividend Portfolio
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.