Summary

• SPLV tracks the S&P 500 Low Volatility Index, selecting 100 securities with the lowest realized volatility over the last year. Reconstitutions are quarterly, and the ETF has $6.93B in assets.
• One standout feature is that SPLV is one of five ETFs not to post a calendar-year loss more than 5% in the last decade.
• However, SPLV is also the worst-performing of five. This article looks at its typical sector mix and current growth, value, and quality features to understand why.
• After this review, it's evident that SPLV falls short on numerous metrics. The bottom line is that by focusing on low volatility alone, defensive investors are making unnecessary sacrifices.
• Therefore, I don't recommend defensive investors buy SPLV, but instead highly suggest considering one ETF that emerges as the clear winner.

Investment Thesis

I last reviewed the Invesco S&P 500 Low Volatility ETF (SPLV) on May 22, 2024, when I asked readers to twice before buying this classic strategy aimed at defensive investors. I maintain that

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