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For investors seeking momentum, Invesco S&P 500 Quality ETF (SPHQ - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 31.11% from its 52-week low price of $53.04/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SPHQ in Focus
The underlying S&P 500 Quality Index tracks the performance of stocks in the S&P 500 Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio. The product charges 15 bps in annual fees (See: All Large Cap Blend ETFs).
Why the Move?
The quality equity segment of the broader market, which tends to outperform during periods of volatility, is becoming an attractive investment option, given escalating geopolitical tensions and increasing inflation in the United States. Additionally, forecasts of rising uncertainty in 2025 and President Trump’s primary campaign promises of imposing new tariffs and initiating a "mass deportation" of undocumented immigrants could further drive prices upward.
Amid market uncertainty, quality investing emerges as a strategic response as a potential buffer against potential headwinds.
More Gains Ahead?
Currently, SPHQ has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 27.56 (as per Barchart.com), which gives cues of a further rally.
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Quality Equity ETF (SPHQ) Hits New 52-Week High
For investors seeking momentum, Invesco S&P 500 Quality ETF (SPHQ - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 31.11% from its 52-week low price of $53.04/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SPHQ in Focus
The underlying S&P 500 Quality Index tracks the performance of stocks in the S&P 500 Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio. The product charges 15 bps in annual fees (See: All Large Cap Blend ETFs).
Why the Move?
The quality equity segment of the broader market, which tends to outperform during periods of volatility, is becoming an attractive investment option, given escalating geopolitical tensions and increasing inflation in the United States. Additionally, forecasts of rising uncertainty in 2025 and President Trump’s primary campaign promises of imposing new tariffs and initiating a "mass deportation" of undocumented immigrants could further drive prices upward.
Amid market uncertainty, quality investing emerges as a strategic response as a potential buffer against potential headwinds.
More Gains Ahead?
Currently, SPHQ has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 27.56 (as per Barchart.com), which gives cues of a further rally.