Average Daily Volume
1.47M
Fund Overview
The Invesco S&P 500® Quality ETF (SPHQ) is an exchange-traded fund that seeks to track the investment results of the S&P 500 Quality Index. This index is composed of high-quality stocks from the S&P 500, selected based on factors such as return on equity, accruals, and financial leverage. SPHQ provides investors with exposure to large-cap U.S. companies that demonstrate strong profitability and sound financial health. The fund is designed for investors seeking a tilt toward quality within the large-cap equity space, potentially offering a balance of growth and stability. SPHQ is rebalanced semi-annually to maintain alignment with its underlying index.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.06 %
- Currency Hedged
-
No
- Portfolio Turnover
-
47 %
- Dividend Date
-
Why Invest in the SPHQ ETF?
Potential Benefits
- Focuses on high-quality companies with strong profitability metrics, which may offer more stability during market downturns.
- Provides exposure to large-cap U.S. equities with a quality tilt, potentially enhancing risk-adjusted returns.
- Lower expense ratio compared to some actively managed quality-focused funds.
- Semi-annual rebalancing helps maintain the fund's quality focus over time.
- Liquidity and transparency due to its structure as an ETF tracking a well-known index.
Potential Risks
- Concentration in quality stocks may underperform during periods when lower-quality stocks rally.
- Large-cap focus means limited exposure to mid- and small-cap companies that may offer higher growth potential.
- Sector biases may emerge based on where quality factors are most prevalent in the market.
- Market risk remains, as even high-quality stocks can decline in value during broad market selloffs.
- Tracking error risk relative to its underlying index.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+3.1%
|
+4.6%
|
-6.8%
|
+7.8%
|
+5.3%
|
+5.8%
|
-6.0%
|
+0.9%
|
-1.4%
|
+0.9%
|
-
|
-
|
| 2025 |
+4.1%
|
+0.8%
|
-5.3%
|
-0.3%
|
+6.3%
|
+1.6%
|
+0.2%
|
+1.4%
|
+1.5%
|
+1.1%
|
+0.9%
|
+0.7%
|
| 2024 |
+3.0%
|
+5.0%
|
+3.7%
|
-3.5%
|
+5.4%
|
+3.7%
|
+1.7%
|
+3.2%
|
+1.2%
|
-2.4%
|
+5.2%
|
-2.7%
|
| 2023 |
+4.8%
|
-2.0%
|
+5.2%
|
+1.7%
|
-0.8%
|
+6.1%
|
+3.8%
|
+0.2%
|
-4.3%
|
-2.7%
|
+6.7%
|
+4.5%
|
| 2022 |
-4.2%
|
-2.6%
|
+0.9%
|
-7.1%
|
+1.6%
|
-10.4%
|
+8.3%
|
-3.8%
|
-8.8%
|
+9.3%
|
+7.1%
|
-4.9%
|
| 2021 |
-0.6%
|
+2.0%
|
+4.2%
|
+3.2%
|
+1.9%
|
+4.6%
|
+2.7%
|
+1.9%
|
-4.2%
|
+6.1%
|
-1.3%
|
+5.0%
|
| 2020 |
-1.0%
|
-8.3%
|
-9.3%
|
+12.3%
|
+5.2%
|
+0.6%
|
+4.3%
|
+7.9%
|
-2.6%
|
-4.0%
|
+9.7%
|
+3.9%
|
| 2019 |
+7.2%
|
+5.0%
|
+3.0%
|
+3.5%
|
-6.5%
|
+6.8%
|
+1.1%
|
-1.2%
|
+1.9%
|
+2.4%
|
+3.3%
|
+3.5%
|
| 2018 |
+4.7%
|
-3.7%
|
-2.5%
|
-1.0%
|
+2.4%
|
-0.4%
|
+3.2%
|
+4.5%
|
+1.8%
|
-7.1%
|
-0.2%
|
-8.0%
|
| 2017 |
+1.3%
|
+3.8%
|
+0.2%
|
+0.9%
|
+1.4%
|
+0.3%
|
+1.0%
|
-0.2%
|
+2.9%
|
+1.1%
|
+3.6%
|
+1.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
JNJ
|
JOHNSON & JOHNSON |
6.0 % |
|
V
|
VISA INC CLASS A |
5.8 % |
|
MA
|
MASTERCARD INC CLASS A |
5.3 % |
|
NFLX
|
NETFLIX INC |
4.9 % |
|
META
|
META PLATFORMS INC CLASS A |
4.8 % |
|
PG
|
PROCTER & GAMBLE CO |
4.6 % |
|
COST
|
COSTCO WHOLESALE CORP |
4.5 % |
|
AAPL
|
APPLE INC |
4.1 % |
|
NVDA
|
NVIDIA CORP |
4.1 % |
|
GE
|
GE AEROSPACE |
2.7 % |
Top 10 holdings shown, out of 101 total holdings.
Related ETFs: SPHQ vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SPHQ tracks the S&P 500 Quality Index, which selects stocks from the S&P 500 based on quality screens. The index methodology evaluates three fundamental factors: return on equity (profitability), accruals ratio (earnings quality), and financial leverage (balance sheet strength). Stocks are ranked and weighted by their composite quality score, with higher-scoring companies receiving larger weights in the index. The fund holds common stocks of these selected companies and is rebalanced semi-annually to maintain its quality focus. This approach results in a portfolio that emphasizes companies with strong fundamentals while still providing broad exposure to the U.S. large-cap equity market.
Frequently Asked Questions
What makes SPHQ different from a standard S&P 500 ETF?
SPHQ focuses specifically on high-quality stocks within the S&P 500, selected based on profitability, earnings quality, and financial strength metrics, rather than holding all S&P 500 companies.
How often does SPHQ rebalance its holdings?
SPHQ rebalances semi-annually to maintain its alignment with the S&P 500 Quality Index.
Does SPHQ pay dividends?
Yes, SPHQ pays dividends quarterly, as it holds dividend-paying stocks from the S&P 500 that meet its quality criteria.
What sectors tend to be overweight in SPHQ?
SPHQ often has higher weightings in sectors where quality factors are more prevalent, typically including technology, healthcare, and consumer staples.
Is SPHQ suitable for long-term investors?
SPHQ can be appropriate for long-term investors seeking exposure to quality large-cap stocks, though investors should consider their overall portfolio strategy and risk tolerance.
Industry Overview
The Invesco S&P 500 Quality ETF (SPHQ) is part of the growing segment of factor-based ETFs that focus on specific investment characteristics like quality, value, or momentum. Quality investing emphasizes companies with strong balance sheets, consistent profitability, and reliable earnings growth. SPHQ provides exposure to this strategy within the large-cap U.S. equity space, offering investors a way to potentially reduce volatility while maintaining exposure to the S&P 500 universe. The quality factor has historically shown resilience during market downturns, making SPHQ an interesting option for investors seeking a defensive tilt within their equity allocation.
Alternative Comparison
Compared to similar quality-focused ETFs like QUAL (iShares MSCI USA Quality Factor ETF), SPHQ has a narrower focus on S&P 500 constituents rather than the broader U.S. market. While both funds target quality characteristics, SPHQ's methodology places more emphasis on financial leverage metrics. Against dividend-focused ETFs like VIG (Vanguard Dividend Appreciation ETF), SPHQ offers a different approach by targeting quality metrics rather than dividend growth history. SPHQ's expense ratio is competitive within the quality ETF space, though some broader market ETFs may have slightly lower fees.
Issuer Overview
Invesco is a global asset management firm with a comprehensive lineup of ETFs across various asset classes and investment strategies. Known for its factor-based and smart beta ETFs, Invesco has established itself as a leader in the ETF space, offering products that cater to both institutional and retail investors. The firm's expertise in index construction and portfolio management supports funds like SPHQ that seek to provide targeted exposures to specific market factors.
Conclusion
The Invesco S&P 500 Quality ETF (SPHQ) offers investors a strategic approach to large-cap U.S. equities with a focus on quality characteristics. By targeting companies with strong profitability, sound financials, and quality earnings, SPHQ may appeal to investors seeking a defensive tilt within their equity allocation. While not immune to market risks, the fund's quality focus could provide relative stability during volatile periods. As with any investment, investors should consider SPHQ's role within their broader portfolio strategy and risk tolerance.
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