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With S&P 500 Dividend Yield at All-Time Low, Consider This ETF

BY | ETF Database
7:53 am ET 08/13/26 | 8 VIEWS
As Creative Planning Chief Market Strategist Charlie Bilello notes, the dividend yield on the S&P 500 has declined to a paltry 1.04% — a record low. The bright side in that scenario? It means that the index is rising, because stock prices and yields move inversely of one another.Still, from an income perspective, a yield of just 1.04% on the benchmark domestic equity gauge isn’t anything to write home about. Indeed, it’s low enough as to imply stock prices are rising more rapidly than companies’ payouts. The S&P 500’s scant yield may also be a sign that equity income investors should assess ETFs such as the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD C+). The $3.42 billion SPHD, which features the added bonus of monthly payouts, sports a 30-day SEC yield of 4.25%. Clearly, that’s well above the current yield on the S&P 500. However, it also surpasses the S&P 500’s dividend yield during some of its historical peaks. “The dividend yield had reached much higher levels during periods of market weakness, including a peak of about 3.87% in the early 1990s, before trending lower over the following decades,” according to Seeking Alpha.More SPHD BenefitsSPHD’s monthly income stream and its stout aforementioned yield are undoubtedly selling, particularly against the backdrop of tiny yields on broader domestic equity indexes. However, there’s more to this ETF’s story. SPHD, which tracks the S&P Low Volatility High Dividend Index, lives up to its billing as a volatility reducer. That indicates that it’s appropriate for a broad swath of investors, including retirees and market participants heavily exposed to low-yielding growth stocks. Like other low volatility ETFs, SPHD’s primary job, in addition to delivering dividends, is to perform less poorly when markets swoon, not capture all of a bull market’s upside. That said, the Invesco ETF has returned an admirable 9.17% this year. Plus, it’s accomplishing that feat with no exposure to tech stocks. The ETF’s holdings hail from 10 of the 11 global industry classification standard (GICS) sectors, but tech is the outlier. Indeed, due to a roughly 39% combined allocation to real estate and financial services stocks, SPHD’s defensive/value traits may be compelling to investors who currently devote significant portions of their portfolios to growth stocks. And those benefits can be attained with a yield far in excess of the broader market. For more news, information, and analysis, visit the Innovative ETFs Content Hub. Invesco Distributors, Inc. is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Invesco Distributors, Inc., nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.

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