3 Low-Cost High-Yield Invesco ETFs with Strong Track Records

Picking individual stocks takes a lot of work, and for all of that effort, you still may underperform the stock market. That’s why more investors are pouring their money into ETFs. You can find funds that fulfill specific objectives that align with your long-term financial goals.

Invesco (NYSE:IVZ) is one of the financial firms that lets investors choose from a wide range of ETFs. The company offers some funds that have attractive yields and relatively low expense ratios. The three Invesco ETFs on this list have strong track records and rising cash flow.

Invesco S&P 500 High Dividend Growers ETF (DIVG)

The Invesco S&P 500 High Dividend Growers ETF (NYSEARCA:DIVG) places a strong emphasis on financials, utilities, and real estate. Those three sectors make up more than half of the fund’s total assets. Most of the stocks are mid-caps, and almost every stock in the fund is a value stock. 

DIVG has a 0.41% expense ratio and a 3.30% 30-day SEC yield. The fund has rallied by 25% over the past five years, and that includes a 6% year-to-date gain. The fund narrows its picks to members of the S&P 500 that have maintained a dividend yield each year for the past five years, and it goes through semi-annual rebalances in April and October.

DIVG’s top three assets are currently Franklin Resources (NYSE:BEN), LyondellBassell Industries (NYSE:LYB), and Pfizer (NYSE:PFE). These stocks make up roughly 7% of the fund’s total assets. 

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) aims to give investors exposure to S&P 500 stocks with high dividends and low volatility. This setup prevents SPHD from beating the market during bull runs, but it offers more insulation during bear markets.

This formula has resulted in flat year-to-date returns, but SPHD is up by 44% over the past five years. The Invesco dividend ETF also has a 30-day SEC yield of 4.54% and a reasonable 0.30% expense ratio. The fund does not invest in growth stocks, and more than half of its capital is in mid-cap stocks.

Real estate, utilities, and consumer staples make up more than half of the fund’s total assets. The top three holdings — Crown Castle (NYSE:CCI), Altria Group (NYSE:MO), and Verizon (NYSE:VZ) — make up 10% of the fund’s total assets.

Invesco High Yield Equity Dividend Achievers ETF (PEY)

The Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY) invests in dividend-paying corporations that are in the Nasdaq US Dividend Achievers 50 Index. The fund prioritizes dividend stocks that have high yields and steady growth rates. It has a 0.53% expense ratio and a 4.70% 30-day SEC yield.

PEY is down by 1% year-to-date but has rallied by 44% over the past five years. Like many high-yield ETFs, PEY prioritizes the financial sector. Almost one-quarter of its assets are in that sector, and utilities come in second place with a 22.2% concentration in the fund. Consumer staples, communication services, and industrials round out the top five sectors.

More than half of the fund’s assets are in small-cap stocks, and an additional 30% of its capital is in mid-cap stocks. Large-cap stocks only make up 14.3% of the fund’s total assets. PEY’s top three holdings are LyondellBasell Industries, Polaris (NYSE:PII), and AES (NYSE:AES).

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