Zacks Investment Ideas feature highlights: PowerShares S&P 500 Low Volatility, S&P 500 Low Volatility High Dividend Index and S&P 500 TR Index

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For Immediate Release

Chicago, IL –March 20, 2013 – Today, Zacks Investment Ideas feature highlights Features: PowerShares S&P 500 Low Volatility ETF (SPLV), S&P 500 Low Volatility High Dividend Index TR (SPHD ) and S&P 500 TR Index (SPY).

Are There Really High-Dividend, Low-Risk ETFs?

Low-volatility investing is no doubt one of the most popular investing themes now-a-days. Our research has shown that low-volatility stocks handily beat the broader markets with significantly lower volatility in the U.S., international markets and emerging markets, over longer periods. (Read: Buy these ETFs for Higher Returns and Lower Risk)

No wonder the flagship product in this space, PowerShares S&P 500 Low Volatility ETF (SPLV) has been one of the most successful launches in ETF history and many more products have been launched after SPLV to capitalize on the growing investor appetite for these low-volatility products.

High Dividends and Low-Volatility—the Best of Both Worlds?

Thankfully some new products combine the two most desirable investment themes—high dividend and low volatility.

As the concept is relatively new in the ETF world, very little historical performance data for the ETFs is available. We therefore looked at the five-year risk-return performance of the S&P 500 Low Volatility High Dividend index and compared its performance with the broader market S&P 500 index (using monthly returns data for the two indexes for the period 3/31/2008--2/28/2013).

Over the last five years, the S&P 500 Low-Volatility High-Dividend index substantially outperformed the S&P 500 index, with lower volatility while at the same time providing a high level of dividend yield to the investors.

Index (ETF)

Annualized Return (5 Y)

Annualized Std.Dev. (5 Y)

S&P 500 Low Volatility High Dividend Index TR ( SPHD )

13.92%

17.29%

S&P 500 TR Index (SPY)

6.82%

19.03%

 

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Read the analyst report on SPLV

Read the analyst report on SPHD

Read the analyst report on SPY

Zacks Investment Research



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