The Beauty of Simplicity: The S&P 500 Low Volatility High Dividend Index

With the S&P 500 Low Volatility High Dividend Index marking five years since its launch in September 2012, we re-examined the advantage of incorporating a low-volatility screen to a high-dividend-yield portfolio as a quality measure, and we compared it to other S&P Dow Jones Dividend Indices in the U.S. market across various aspects. 

The low volatility screen acted as a quality measure to avoid high-yield stocks with sharp price drops and captured the low-volatility factor for the S&P 500 Low Volatility High Dividend Index. 

The S&P 500 Low Volatility High Dividend Index delivered a higher absolute and risk-adjusted return than the S&P 500 over the back-tested period (December 1990 to September 2012) and over the five-year live history (September 2012 to September 2017). 

Read the complete white paper at the link beneath Related Files

Supporting documents

Click link to download and view these files