SPHQ

The Invesco S&P 500 Quality ETF (SPHQ) holds U.S. large‑cap equities drawn from the S&P 500, but it screens for the 100 stocks with the highest “quality” scores based on return on equity, low accruals and modest financial leverage, resulting in a diversified sector mix concentrated in the United States. Its strategy is a smart‑beta approach that seeks to track the S&P 500 Quality Index, using a fundamentally weighted methodology rather than traditional market‑cap weighting. This design gives the fund a defensive tilt toward financially strong companies, making it appropriate for investors who want core exposure to U.S. large‑cap stocks while favoring higher‑quality, potentially lower‑volatility holdings.