At a glance
SPHQ charges 0.15% a year, below the 0.38% average of the 8 funds most like it (the 2nd cheapest of 9). It has $19.45B in assets, the 2nd largest of that group; it paid 1.03% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +13.5% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds; over three years it returned +19.9% a year. At its worst it fell 25.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months after the low. Its ten largest positions make up 43.1% of the fund, out of 100 in all.
The short version
Invesco S&P 500® Quality ETF (SPHQ) is an index fund tracking the S&P 500 Quality Index: the 100 S&P 500 stocks that score highest on profitability, earnings quality and low debt. It may suit investors wanting a low-cost tilt toward financially strong large companies. Its 0.15% yearly fee (expense ratio), per its August 2026 prospectus, matches iShares MSCI USA Quality Factor ETF (QUAL) and is well below the 0.38% average of similar funds.
Price history
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SPHQ +13.5% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SPHQ official prospectus, to Dec 31, 2025 | — | +13.24% | — | +13.83% | +14.27% | — |
| SPHQ price data to Nov 2, 2026 | +11.6% | +13.5% | +19.9% | +11.5% | — | +15.8% |
- Over the year to Nov 2, 2026, SPHQ returned +13.5%, 5th of 9 among similar funds.
- Its 5-year annualized return was +11.5%.
- Its worst full calendar year was 2022 (-15.8%); its best was 2021 (+28.0%).
- The deepest fall in its price history was 25.1% (Jan 4, 2022 to Sep 30, 2022), recovered by Jul 31, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.6% | — |
| 2025 | +13.3% | +13.24% |
| 2024 | +25.4% | +25.49% |
| 2023 | +24.8% | +24.75% |
| 2022 | -15.8% | -15.74% |
| 2021 | +28.0% | +27.96% |
| 2020 | — | +17.42% |
| 2019 | — | +33.68% |
| 2018 | — | -6.98% |
| 2017 | — | +19.13% |
| 2016 | — | +14.17% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.1% over that stretch · deepest drop along the way 25.1%, back to its old high 10 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6300 | |
| 2025 | $0.8200 | +6.5% |
| 2024 | $0.7700 | 0.0% |
| 2023 | $0.7700 | -4.9% |
| 2022 | $0.8100 | +30.6% |
| 2021 | $0.6200 |
What's inside
As of Jul 31, 2026, the fund held 100 securities; the ten largest made up 43.12% of assets.
| Holding | Weight | |
|---|---|---|
| Mastercard Inc. | 5.76% | |
| Visa Inc. | 5.57% | |
| Apple Inc. | 5.21% | |
| GE Vernova Inc. | 4.13% | |
| Costco Wholesale Corp. | 3.99% | |
| Lam Research Corp. | 3.97% | |
| General Electric Co. | 3.95% | |
| Cisco Systems, Inc. | 3.73% | |
| Netflix, Inc. | 3.71% | |
| Western Digital Corp. | 3.08% | |
| Procter & Gamble Co. (The) | 2.85% | |
| Applied Materials, Inc. | 2.63% | |
| Sandisk Corp. | 2.37% | |
| KLA Corp. | 2.37% | |
| Texas Instruments Inc. | 2.21% |
By country
United States 95.18%Ireland 4.45%Bermuda 0.33%By asset type
Stocks 99.95%By sector
Sectors of the companies held, for the 81.4% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $1.42B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.25%, +5.88%, -6.06%.
How it works
SPHQ is an index fund: it aims to match the S&P 500 Quality Index, before fees. S&P Dow Jones Indices scores every S&P 500 company on three measures. Return on equity is the past 12 months' profit divided by book value, or shareholders' equity. The accruals ratio measures how much a company's net operating assets grew relative to its total assets, a check on whether earnings are backed by cash. Financial leverage is total debt divided by book value. Financial and real estate companies are scored on return on equity and leverage only. The 100 top scorers form the index.
Each stock's weight is its quality score multiplied by its market capitalization (total stock market value), within limits on single stocks and sectors, so large, high-scoring companies count most. As of June 30, 2026, index members ranged from $7 billion to $4.3 trillion in market value. The fund uses full replication, owning every index stock in roughly its index weight.
The fund follows the index mechanically: it won't drop a lagging stock unless the index does. The prospectus reports 38% portfolio turnover, meaning roughly that share of holdings changed over a year. If a few index weights grow large, the fund could become non-diversified, holding more in a handful of companies, without a shareholder vote.
What it really costs
- SPHQ charges 0.15% a year, versus an average of 0.38% for the similar funds below (2nd of 9, cheapest first).
- The fee includes a 0.05% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $245 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SPHQ | $15 | $54 | $102 | $245 |
In a retirement portfolio
It spreads money across 100 companies drawn from the S&P 500 for 0.15% a year, so it can anchor a stock allocation, with a tilt toward highly profitable, low-debt firms.
SPHQ could serve as part of a portfolio's US stock allocation, but it is not a shock absorber. In the first quarter of 2020 it lost 17.58%, and it fell 15.74% in calendar 2022, its worst year in the decade through 2025. From January 4 to September 30, 2022, it dropped 25.1% and did not regain that high until July 31, 2023, about 10 months after the low. Its 2008 crisis results aren't shown here.
Anyone forced to cash out shares in a slump like 2022 would have locked in losses, so a separate reserve for near-term spending can matter. Income is modest: quarterly dividends over the 12 months to October 29, 2026 equaled about 1.01% of the share price. The 0.15% expense ratio, per the August 2026 prospectus, keeps costs low. Past results don't predict future returns, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting S&P 500 stocks screened on return on equity, accruals and debt, for 0.15% a year versus a 0.38% average among similar funds.
- Those who prefer an established fund: SPHQ launched in December 2005 and held $19.4 billion in net assets as of July 31, 2026.
- Long-horizon investors who can sit through drops like the 25.1% fall in 2022, which took until July 31, 2023 to recover.
Look elsewhere if
- Income seekers: quarterly dividends over the 12 months to October 29, 2026 equaled about 1.01% of the share price.
- Anyone wanting protection in downturns: it lost 17.58% in the first quarter of 2020 and 15.74% in calendar 2022.
- Those wanting full S&P 500 breadth: it holds 100 stocks, and the top 10 were 43.1% of assets as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SPHQ this fund | — | 0.15% | $19.45B | +13.5% | +19.9% |
| XPND First Trust Expanded Technology ETF | 42% | 0.65% | $39.4M | +1.8% | +25.7% |
| QUAL iShares MSCI USA Quality Factor ETF | 40% | 0.15% | $46.53B | +14.1% | +19.6% |
| TMFE Motley Fool Capital Efficiency 100 Index ETF | 37% | 0.5% | $78.4M | +3.7% | +20.9% |
| DUHP Dimensional US High Profitability ETF | 37% | 0.21% | $12.28B | +11.7% | +21.2% |
| PWB Invesco Large Cap Growth ETF | 36% | 0.56% | $2.31B | +17.3% | +33.0% |
| SXQG ETC 6 Meridian Quality Growth ETF | 33% | 0.7% | $63.3M | 0.0% | +14.4% |
| JQUA JPMorgan U.S. Quality Factor ETF | 31% | 0.12% | $8.22B | +21.6% | +24.2% |
Questions investors ask
Is SPHQ good for retirement?
It can work as part of the stock side of a long-term retirement portfolio, but it is not defensive. According to its prospectus, it returned 14.27% a year on average over the 10 years to December 31, 2025. It also lost 17.58% in the first quarter of 2020 and 15.74% in 2022. Its 1.01% trailing yield as of October 29, 2026 means it provides little income on its own.
What's the difference between SPHQ and QUAL?
Both are US quality-stock funds charging 0.15% a year, but they track different indexes. SPHQ follows the S&P 500 Quality Index, holding 100 S&P 500 stocks; iShares MSCI USA Quality Factor ETF (QUAL) follows an MSCI index. About 40% of their holdings overlap. As of October 29, 2026, SPHQ returned 15.6% over one year versus 14.3% for QUAL, and 22.4% a year over three years versus 22.0%. QUAL is larger: $46.5 billion in net assets versus $19.4 billion as of July 31, 2026.
What stocks does SPHQ hold?
As of July 31, 2026, SPHQ's largest holdings were Mastercard (5.8% of assets), Visa (5.6%), Apple (5.2%), GE Vernova (4.1%), Costco (4.0%), Lam Research (4.0%), General Electric (4.0%), Cisco (3.7%), Netflix (3.7%) and Western Digital (3.1%). Those 10 made up 43.1% of the fund. Technology was the largest sector, and the prospectus noted significant information technology exposure as of April 30, 2026, so swings in that sector can move the fund noticeably.
Does SPHQ pay dividends?
Yes. SPHQ pays dividends quarterly, passing along what its 100 companies pay out, after fund expenses. Over the 12 months to October 29, 2026, it paid about $0.86 per share, a trailing yield of about 1.01% of the share price. The index ranks stocks on profitability, accruals and debt, not dividends, so income is a side effect rather than a goal. Investors focused on income may find dividend-oriented funds worth comparing.
What is SPHQ's expense ratio?
SPHQ's expense ratio, the yearly fee taken from fund assets, is 0.15%, according to its prospectus filed August 27, 2026. That ranks second-lowest among nine similar funds, including SPHQ, and sits well below the 0.38% average of the other eight. JPMorgan U.S. Quality Factor ETF (JQUA) costs less, at 0.12%. In the SEC's standard example, which assumes $10,000 invested, a 5% yearly return and shares redeemed at the end of each period, costs total $15 over one year and $245 over 10 years.