"When most investors think about S&P 500 exposure, they picture owning the entire market. But what if you could filter that universe down to only the most financially sound companies? That's the promise behind Invesco S&P 500 Quality ETF ( NYSEARCA:SPHQ), a fund that screens for profitability, stability, and operational excellence rather than simply tracking market cap. Built for Investors Who Want Quality Without the Guesswork"
"The return engine here is straightforward. The fund screens 120 S&P 500 companies for return on equity, financial leverage, and earnings consistency-metrics that naturally favor businesses with pricing power and predictable cash flows. This methodology explains why payment processors dominate the top holdings, with Mastercard ( NYSE:MA) and Visa ( NYSE:V) combining for nearly 10% of the portfolio through their network effects and transaction volume growth."
SPHQ filters the S&P 500 for profitability, leverage, and earnings consistency, selecting 120 companies with strong returns on equity and stable cash flows. The portfolio emphasizes businesses with pricing power and predictable revenue, leading to heavy weights in payment processors such as Mastercard and Visa (nearly 10% combined) and membership-driven retailers like Costco. The ETF charges a 0.15% expense ratio and yields 1.07% in dividends. Over the past five years, SPHQ returned 93.7% versus the S&P 500's 77.1%. Year-to-date through February 10, 2026, SPHQ gained 6.0% compared with the broader index's 1.5%.
Read at 24/7 Wall St.
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