DGRW - SPHQ: High Quality ETF Designed For Long-Term Investors
2024-03-25 11:30:06 ET
Summary
- SPHQ tracks the S&P 500 Quality Index, selecting 100 of the highest-quality large-cap U.S. stocks. Its expense ratio is 0.15% and the ETF has $8.69 billion in assets under management.
- Backtested Index results indicate the Index has outperformed the S&P 500 by 3% per year since 1995. However, these results are incredibly deceiving and irrelevant.
- Today's largest companies are almost all high-quality, which is why the S&P 500 Quality Index has delivered nearly identical returns compared to its benchmark over the last decade.
- Instead, SPHQ's benefits include guaranteed exposure to the quality factor and relatively low overlap with SPY, indicating it's an appropriate complementary ETF.
- This analysis also considers JQUA, QUAL, and QLTY as alternatives.