The Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) focuses on 60 small-cap stocks that offer high dividend yields and low volatility, making it a compelling choice for investors seeking reliable income. Currently, it boasts an attractive dividend yield of 6.39%, although its performance over the past year has seen a decline of 5.84% and a substantial drop of 37.14% over the last five years. Despite recent challenges, XSHD's strategy of rebalancing semi-annually positions it well for potential recovery, especially as it recently moved above its 50-day moving average, indicating a shift toward a bullish trend.
Pros:
- Targets high-yield small-cap stocks
- Low volatility focus
Cons:
- Negative 1-year and 5-year returns
- Small market cap may increase risk
In summary, the Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) may be suitable for income-focused investors who prioritize dividend yield over capital appreciation and are willing to accept the risks associated with small-cap stocks. However, potential investors should carefully consider its recent performance trends and volatility before making a decision.