ETF Evaluator: Invesco S&P 500® Downside Hedged ETF () Follow This ETF

Invesco S&P 500® Downside Hedged ETF Overview

Invesco S&P 500® Downside Hedged ETF (PHDG) is an actively managed Nontraditional Equity Equity Hedged exchange-traded fund (ETF). Invesco launched the ETF in 2012.

The investment seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income market returns. The fund seeks to achieve its investment objective by allocating its assets generally among the components of the S&P 500® Dynamic VEQTOR Index. The Benchmark is composed of up to three types of components: (i) an equity component, represented by the S&P 500® Index; (ii) a volatility hedge component, represented by the S&P 500® VIX Short-Term Futures Index (“VIX Futures Index”); and (iii) cash.

About Invesco S&P 500® Downside Hedged ETF (PHDG)

There are 4 members of the management team with an average tenure of 9.90 years: Peter Hubbard (2012), Theodore Samulowitz (2012), David Hemming (2016) and Dave Sahota (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and S&P 500 Dynamic VEQTOR TR USD index with a weighting of 100%. Invesco S&P 500® Downside Hedged ETF has 510 securities in its portfolio. The top 10 holdings constitute 44.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco S&P 500® Downside Hedged ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Invesco S&P 500® Downside Hedged ETF has 0.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 75.3% There is 0.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco S&P 500® Downside Hedged ETF has 16.3% of the portfolio in cash.

Assets Under Management

The fund has $63 million in total assets, which is below the $294 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PHDG Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco S&P 500® Downside Hedged ETF expense ratio is below average compared to funds in the Equity Hedged category. Invesco S&P 500® Downside Hedged ETF has an expense ratio of 0.39%, which is 49% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco S&P 500® Downside Hedged ETF has a portfolio turnover rate of 929%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 97% for the Equity Hedged category.

Recently, in the month of July 2026, Invesco S&P 500® Downside Hedged ETF returned -0.6%, which earned it a grade of D, as the Equity Hedged category had an average return of -1.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco S&P 500® Downside Hedged ETF has a trailing yield of 1.69%, which is below the 3.45% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco S&P 500® Downside Hedged ETF Grades

Year to date, the ETF has returned 10.0%, 2.9 percentage points better than the category, which translates into a grade of A. The fund has returned 16.1% over the past year (grade of B), 8.3% over the past three years (grade of F) and 4.2% per year over the past five years (grade of D) and 7.2% per year over the past 10 years (grade of C).

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