SPHQ ETF: What Is It? Returns, Expense Ratio, Holdings and Alternative ETFs Explained
The Invesco S&P 500 Quality ETF (SPHQ) selects large-cap US high-quality stocks based on return on equity and financial soundness. Its strengths are a low expense ratio, quarterly dividends and a defensive character. For investors comparing it with the other quality factor ETFs QUAL and JQUA, differences in index construction and fees are the key selection criteria.
SubscribeWhat Is the Invesco S&P 500 Quality ETF?
This is a quality factor ETF that tracks the top-ranked stocks in the S&P 500 by a quality score calculated from return on equity, accruals ratio and financial leverage. It is structured to concentrate selectively on high-quality large caps.
It suits long-term investors who want exposure to US large caps, diversified mainly across high-quality companies with proven financial soundness and profitability.
It is a passively managed (index-tracking) ETF run by Invesco.
How Does the Invesco S&P 500 Quality ETF Invest?
| Item | Details |
|---|---|
| Tracked index | S&P 500 Quality Index |
| Management style | Passive (index tracking) |
| Rebalancing frequency | Semiannual (June and December) |
| Dividend frequency | Quarterly |
| Manager | Invesco |
| Total expense ratio | 0.15% |
Using the stocks in its parent index, the S&P 500, the index calculates a quality score by combining three metrics (return on equity, accruals ratio and financial leverage) with equal weighting, and includes only the top-scoring stocks. Weights are assigned in proportion to the quality score, and a cap is applied to limit concentration in any single sector.
- Selection of high-quality stocks based on financial metrics
- Cap on single-sector weight
Invesco S&P 500 Quality ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $18.5B, and the total expense ratio is 0.15% per year.
Compared with the other quality factor ETFs QUAL and JQUA, it differs in index construction and expense ratio.
Invesco S&P 500 Quality ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause it selects high-quality stocks, it tends to move similarly to the broader market, while its defensive character tends to stand out during volatile periods. Short-term performance is influenced by interest rates, earnings seasons and sector rotation.
Demand for factor investing remains steady, and inflows tend to be pronounced when investors favor high-quality stocks. Interest also gathers around it as a defensive asset when market uncertainty rises, and it belongs to a category with substantial total assets.
Invesco S&P 500 Quality ETF Pros and Cons
Its strengths are the selection of financially sound stocks and a low expense ratio, while a drawback is that, given its factor nature, it can lag broad indexes in bull markets.
💪 Key Strengths
⚠️ Points of Caution
Invesco S&P 500 Quality ETF Alternatives and Related Products
QUAL and JQUA, shown in the table, track the same US quality factor and are direct substitutes, though they differ in index construction and fees. DGRW and QGRW are variations that combine quality with dividend growth or growth characteristics, and for those who want broad core exposure, VOO, a standard S&P 500 ETF, can also be considered for comparison.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 QUAL | iShares MSCI USA Quality Factor ETF | $223.55 | +0.3% | $48.2B | 0.15% | 0.85% | +13.6% |
 DGRW | WisdomTree U.S. Quality Dividend Growth Fund | $98.63 | +0.4% | $16.9B | 0.28% | 1.2% | +9.8% |
 JQUA | JPMorgan U.S. Quality Factor ETF | $76.42 | +0.7% | $9.4B | 0.12% | 1.04% | +20.9% |
 QGRW | WisdomTree U.S. Quality Growth Fund | $66.55 | +0.9% | $3.2B | 0.28% | 0.08% | +13.3% |
 QDF | Northern Trust Quality Dividend ETF | $90.80 | +0.7% | $2.2B | 0.39% | 1.51% | +13.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| MA | Mastercard Incorporated | 0.10% | $613.50 | -1.6% | $537.4B | 33.8 | 0.58% |
| V | Visa Inc | 0.10% | $404.16 | -0.9% | $754.6B | 34.7 | 0.67% |
| AAPL | Apple Inc | 0.10% | $343.91 | -1.1% | $5.02T | 39.4 | 0.32% |
| COST | Costco Wholesale Corp | 0.05% | $1005.16 | +0.2% | $445.4B | 48.4 | 0.57% |
| GE | GE Aerospace | 0.04% | $288.43 | +1.0% | $298.0B | 33.3 | 0.63% |
| GEV | GE Vernova Inc | 0.04% | $855.12 | +4.9% | $227.7B | 24.5 | 0.23% |
| LRCX | Lam Research Corp | 0.04% | $237.50 | +3.2% | $297.2B | 35.3 | 0.55% |
Invesco S&P 500 Quality ETF Investor Checkpoints
Here are the points to review before investing in SPHQ. Although it is an ETF that selects financially sound stocks, investors should thoroughly confirm in advance its factor-investing characteristics, sector concentration, currency exposure and the impact of fees over a long holding period.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative cost impact over a long holding period | Low |
| 📊 Sector concentration | Track trends in technology and healthcare weights | Needs checking |
| 📈 Factor character | Understand performance differences in bull and bear markets | Needs checking |
| 💱 Exchange rate | Impact on returns converted to Korean won | Not currency hedged |
In growth-led phases, performance can diverge from broad indexes, and volatility from rising weights in specific sectors is a short-term risk factor. In a market crash, even high-quality stocks struggle to avoid short-term losses.
It is a suitable choice for long-term investors who want to diversify across large-cap US high-quality stocks with a focus on financial soundness. For a like-for-like factor comparison, we recommend also reviewing QUAL and JQUA, and if a broad core holding is the priority, VOO.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
Today's 5 AI picks, all free