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SPHQ - ETF AI Analysis

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SPHQ

Invesco S&P 500 Quality ETF (SPHQ)

Rating:74Outperform
Price Target:
SPHQ, the Invesco S&P 500 Quality ETF, has a solid overall rating that reflects a portfolio led by financially strong, well-established companies. Top holdings like Apple and Lam Research boost the fund’s quality by combining robust profits, positive earnings sentiment, and exposure to long-term growth areas like services and AI-related technologies. The main risk is that several key holdings show signs of potential overvaluation or bearish technical trends, which could increase volatility even though the underlying businesses remain strong.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year to date, indicating positive recent momentum.
Quality Tech and Industrial Leaders
Several major holdings in technology and industrials, such as Lam Research, KLA, Cisco, Caterpillar, and Costco, have delivered strong year-to-date results that support the fund’s overall performance.
Low Expense Ratio for a Large Fund
The ETF’s relatively low fee and large asset base mean investors get broad exposure to quality companies at a modest ongoing cost.
Negative Factors
Heavy U.S.-Only Exposure
With almost all assets in U.S. stocks, the fund offers little geographic diversification and is highly tied to the U.S. market’s fortunes.
Sector Concentration in Technology and Industrials
A large portion of the portfolio is in technology and industrial companies, which could hurt returns if these sectors face a downturn.
Several Large Holdings Are Lagging
Some top positions like Apple, Visa, Mastercard, GE, and Procter & Gamble have shown weak year-to-date performance, which can drag on the fund if this trend continues.

SPHQ vs. SPDR S&P 500 ETF (SPY)

SPHQ Summary

SPHQ is the Invesco S&P 500 Quality ETF, which follows the S&P 500 Quality index. It focuses on large, financially strong U.S. companies with steady earnings and solid balance sheets. The fund holds well-known names like Apple and Costco, along with other established blue-chip businesses across technology, industrials, and consumer sectors. Someone might invest in SPHQ to seek long-term growth while tilting toward higher-quality companies instead of the overall market. A key risk is that it still owns stocks, so its value can go up and down with the stock market, especially U.S. large-cap companies.
How much will it cost me?The Invesco S&P 500 Quality ETF (SPHQ) has an expense ratio of 0.15%, meaning you’ll pay $1.50 per year for every $1,000 invested. This is lower than the average for actively managed funds because SPHQ is passively managed, tracking the S&P 500 Quality Index to keep costs down.
What would affect this ETF?The SPHQ ETF, with its focus on high-quality large-cap U.S. stocks, could benefit from continued strength in the technology sector, which is its largest exposure, as well as stable consumer demand for defensive products from companies like Procter & Gamble and Coca-Cola. However, rising interest rates or economic slowdowns could negatively impact industrial and financial sectors, which also make up significant portions of the fund's holdings. Regulatory changes or geopolitical tensions affecting major companies like Apple and Visa could further influence the ETF's performance.

SPHQ Top 10 Holdings

SPHQ leans heavily on U.S. large caps, with a clear tilt toward tech and industrial powerhouses. Lam Research and Cisco are doing the heavy lifting, riding strong momentum in chips and networking, while Apple and Caterpillar add steady muscle to the fund’s growth story. On the flip side, Visa and Mastercard have been lagging, acting like a small brake on an otherwise solid engine. Consumer staples like Coca-Cola and Costco help smooth the ride, giving this U.S.-focused ETF a quality-first, but not overly flashy, profile.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Lam Research5.40%$1.03B$453.36B309.75%
77
Outperform
Apple4.61%$880.47M$4.34T48.20%
79
Outperform
GE Aerospace4.48%$856.41M$347.18B41.72%
72
Outperform
Cisco Systems4.42%$845.59M$480.19B88.95%
77
Outperform
Costco4.35%$831.32M$432.70B-0.79%
72
Outperform
Visa4.25%$813.06M$601.13B-8.63%
70
Outperform
KLA4.23%$807.97M$31.50B193.36%
77
Outperform
Mastercard3.92%$749.77M$429.87B-12.82%
75
Outperform
Applied Materials3.68%$703.04M$438.77B232.52%
77
Outperform
Caterpillar3.58%$683.57M$413.48B155.02%
76
Outperform

SPHQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
82.36
Positive
100DMA
80.01
Positive
200DMA
76.88
Positive
Market Momentum
MACD
1.36
Negative
RSI
69.47
Neutral
STOCH
90.06
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SPHQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 85.26, equal to the 50-day MA of 82.36, and equal to the 200-day MA of 76.88, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 69.47 is Neutral, neither overbought nor oversold. The STOCH value of 90.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPHQ.

SPHQ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$19.13B0.15%
74
Outperform
$1.00T0.03%
74
Outperform
$794.28B0.03%
74
Outperform
$776.90B0.09%
74
Outperform
$459.22B0.18%
75
Outperform
$140.55B0.02%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPHQ
Invesco S&P 500 Quality ETF
88.70
19.08
27.41%
VOO
Vanguard S&P 500 ETF
IVV
iShares Core S&P 500 ETF
SPY
SPDR S&P 500 ETF Trust
QQQ
Invesco QQQ Trust
SPYM
State Street SPDR Portfolio S&P 500 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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