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Is Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?
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Designed to provide broad exposure to the Foreign Large Growth ETF category of the market, the Invesco S&P International Developed Quality ETF (IDHQ - Free Report) is a smart beta exchange traded fund launched on 06/13/2007.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $1.05 billion, this makes it one of the largest ETFs in the Foreign Large Growth ETF. IDHQ is managed by Invesco. 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.29% for IDHQ, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.01%.
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, Roche Holding Ag (ROP) accounts for about 4.95% of total assets, followed by Asml Holding Nv (ASML) and Novartis Ag (NOVN).
Its top 10 holdings account for approximately 32.41% of IDHQ's total assets under management.
Performance and Risk
The ETF has added roughly 25.91% so far this year and was up about 32.53% in the last one year (as of 09/16/2026). In the past 52-week period, it has traded between $33.01 and $46.35
IDHQ has a beta of 0.92 and standard deviation of 16.95% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 213 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 $342.02 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $657.81 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?
Designed to provide broad exposure to the Foreign Large Growth ETF category of the market, the Invesco S&P International Developed Quality ETF (IDHQ - Free Report) is a smart beta exchange traded fund launched on 06/13/2007.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $1.05 billion, this makes it one of the largest ETFs in the Foreign Large Growth ETF. IDHQ is managed by Invesco. 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.29% for IDHQ, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.01%.
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, Roche Holding Ag (ROP) accounts for about 4.95% of total assets, followed by Asml Holding Nv (ASML) and Novartis Ag (NOVN).
Its top 10 holdings account for approximately 32.41% of IDHQ's total assets under management.
Performance and Risk
The ETF has added roughly 25.91% so far this year and was up about 32.53% in the last one year (as of 09/16/2026). In the past 52-week period, it has traded between $33.01 and $46.35
IDHQ has a beta of 0.92 and standard deviation of 16.95% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 213 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 $342.02 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $657.81 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.