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Is Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?
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Making its debut on 06/13/2007, smart beta exchange traded fund Invesco S&P International Developed Quality ETF (IDHQ - Free Report) provides investors broad exposure to the Foreign Large Growth ETF category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
IDHQ is managed by Invesco, and this fund has amassed over $579.16 million, which makes it one of the largest ETFs in the Foreign Large Growth ETF. This particular fund seeks to match the performance of the S&P Quality Developed ex US LargeMidCap Index before fees and expenses.
The S&P Quality Developed ex US LargeMidCap Index tracks the performance of stocks in the S&P Developed Ex-US LargeMidCap Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, making it the least expensive product in the space.
It's 12-month trailing dividend yield comes in at 2.37%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Asml Holding Nv (ASML) accounts for about 6.65% of total assets, followed by Novartis Ag (NOVN) and Roche Holding Ag (ROG).
Its top 10 holdings account for approximately 34.48% of IDHQ's total assets under management.
Performance and Risk
The ETF return is roughly 3.69% and is up roughly 29.95% so far this year and in the past one year (as of 01/08/2026), respectively. IDHQ has traded between $27.24 and $36.48 during this last 52-week period.
The ETF has a beta of 0.88 and standard deviation of 14.32% for the trailing three-year period, making it a low risk choice in the space. With about 201 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P International Developed Quality ETF is a reasonable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. However, there are other ETFs in the space which investors could consider.
VictoryShares International Free Cash Flow Growth ETF (GRIN) tracks VICTORY INTL GROWTH FREE CASH FLOW INDEX and the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) tracks Dorsey Wright Developed Markets Technical Leaders Index. VictoryShares International Free Cash Flow Growth ETF has $244.88 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $540.4 million. GRIN has an expense ratio of 0.56% and PIZ changes 0.80%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Growth ETF
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?
Making its debut on 06/13/2007, smart beta exchange traded fund Invesco S&P International Developed Quality ETF (IDHQ - Free Report) provides investors broad exposure to the Foreign Large Growth ETF category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
IDHQ is managed by Invesco, and this fund has amassed over $579.16 million, which makes it one of the largest ETFs in the Foreign Large Growth ETF. This particular fund seeks to match the performance of the S&P Quality Developed ex US LargeMidCap Index before fees and expenses.
The S&P Quality Developed ex US LargeMidCap Index tracks the performance of stocks in the S&P Developed Ex-US LargeMidCap Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, making it the least expensive product in the space.
It's 12-month trailing dividend yield comes in at 2.37%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Asml Holding Nv (ASML) accounts for about 6.65% of total assets, followed by Novartis Ag (NOVN) and Roche Holding Ag (ROG).
Its top 10 holdings account for approximately 34.48% of IDHQ's total assets under management.
Performance and Risk
The ETF return is roughly 3.69% and is up roughly 29.95% so far this year and in the past one year (as of 01/08/2026), respectively. IDHQ has traded between $27.24 and $36.48 during this last 52-week period.
The ETF has a beta of 0.88 and standard deviation of 14.32% for the trailing three-year period, making it a low risk choice in the space. With about 201 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P International Developed Quality ETF is a reasonable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. However, there are other ETFs in the space which investors could consider.
VictoryShares International Free Cash Flow Growth ETF (GRIN) tracks VICTORY INTL GROWTH FREE CASH FLOW INDEX and the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) tracks Dorsey Wright Developed Markets Technical Leaders Index. VictoryShares International Free Cash Flow Growth ETF has $244.88 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $540.4 million. GRIN has an expense ratio of 0.56% and PIZ changes 0.80%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Growth ETF
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.