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While SPHD is positioned as a low volatility fund, it has a noticeable value bias as two-thirds of its holdings are classified as value stocks.

“Mature, slow-growing firms tend to trade at lower valuations and pay out a larger share of their earnings as dividends than their faster-growing counterparts, which are investing more aggressively to expand. Both characteristics can lead to higher dividend yields,” said Morningstar.

The research firm has a Bronze rating on SPHD.

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