Invesco S&P Ultra Dividend Revenue ETF earns a Morningstar Medalist Rating of Neutral with strength in areas such as People offset by weaker spots such as Process. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy earns a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in quality exposure and an overweight in yield exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Ford Motor Company

Dow Inc

Citigroup

LyondellBasell Industries

Best Buy

Philip Morris

U.S. Bancorp

PNC Financial Services

Pfizer

Duke Energy

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Invesco S&P Ultra Dividend Revenue ETF earns a Below Average Process Pillar rating. 

The process is bolstered by tracking an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. However, the rating is held back by the fund's unimpressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's five-year risk-adjusted success ratio of 42% also detracts from the process. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 This strategy leans toward smaller, more value-oriented companies compared with its average peer in the Large Value Morningstar Category. Analyzing additional factors, this strategy has consistently favored low-quality stocks compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy's portfolio also has had exposure to more stocks with high dividend or buyback yields over peers in these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Given the high trading volume of holdings, this fund also tilts toward liquid assets. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In this month, the strategy also had more exposure to the Liquidity factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and utilities relative to the category average by 15.9 and 11.7 percentage points, respectively. The sectors with low exposure compared to category peers are technology and industrials, underweight the average by 12.5 and 11.8 percentage points of assets, respectively. The portfolio is positioned across 61 holdings and is relatively top-heavy. Of the strategy's assets, 49.8% are concentrated within the top 10 holdings, compared to the typical peer's 27.4%. And finally, in terms of portfolio turnover, on a year-over-year basis, 127% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Below Average

Process

Invesco S&P Ultra Dividend Revenue ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are four managers listed on the fund: Michael Jeanette, Peter Hubbard, Tony Seisser, Pratik Doshi. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of 144 strategies, with solid long-term prospects. The strategies average a Bronze asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco S&P Ultra Dividend Revenue ETF

RDIV tracks an index that selects the 60-highest-yielding stocks from the S&P 900 and weights them by revenue.

RDIV is a smart-beta play representing the 60 high-yield S&P 900 constituents selected in a four-step process. RDIV's portfolio comprises mostly large-cap, high-yield, grossly underpriced, top-quality companies with unappealing growth characteristics. I am skeptical about using this vehicle to prepare for a possible deeper market correction.

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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P Ultra Dividend Revenue ETF (RDIV) is a passively managed exchange traded fund launched on 10/01/2013.

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Invesco S&P Ultra Dividend Revenue ETF is an index fund investing in high-yield U.S. equities with a 4.1% dividend yield. The RDIV ETF is more expensive than similar dividend ETFs with lower expenses, such as VYM and SCHD. Although RDIV does have some benefits and advantages, its peers seem stronger.

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Invesco S&P Ultra Dividend Revenue ETF is a fund that tracks the S&P 900 Dividend Revenue-Weighted Index and has a portfolio of 60 stocks. The RDIV fund is overweight in the financial sector and in the top 10 holdings. Valuation looks attractive, but quality, volatility, and past performance are not.

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Invesco S&P Ultra Dividend Revenue ETF holds 60 dividend stocks weighted on revenues. It is overweight in financials. Valuation is attractive, but quality, return and volatility are underwhelming.

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The RDIV gives exposure to high-yielding companies in the S&P 900 Index. RDIV has performed well in the short term, with a 7.2% return in 2022. However, longer-term returns are more modest.

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RDIV selects 60 high-yielding large- and mid-cap stocks and weights them by revenue. Its expense ratio is 0.39% and RDIV has nearly $1 billion in assets under management. RDIV is expected to yield close to 4%, a significant improvement on its 3.17% trailing yield. However, its dividend growth is poor, meaning it's less appropriate for long-term buyers.

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RDIV holds 60 of the highest-yielding dividend stocks in the S&P 900 and weights them by revenue. Turnover is consistently near 100%, fees are 0.39%, and the ETF yields 3.07%.

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Dividends play a key role in finance. Going back to the 70s, 84% of the total return of the S&P 500 can be attributed to reinvested dividends. If you are looking for a combination of capital appreciation and a regular source of income, RDIV can be a good choice for you.

News for Invesco S&P Ultra Dividend Revenue ETF ETF (RDIV)