SPHQ and JQUA both target U.S. large-cap quality by screening for high return on equity, clean accruals, and strong balance sheets, with similar fees. SPHQ concentrates on a roughly 100-stock subset from the S&P 500 Quality Index, betting that the highest-scoring quality names will compound faster than the broader index. JQUA uses a wider Russell 1000-style universe of roughly 200-plus names through the JPMorgan U.S. Quality Factor Index, aiming for smoother performance by blending profitability, solvency, and earnings quality. In 2022, JQUA fell less during a rising-yield environment, but from early 2022 through May 13, 2026, SPHQ delivered higher returns across standard windows.
"SPHQ tracks the S&P 500 Quality Index, a roughly 100-stock subset of the S&P 500 ranked on ROE, accruals ratio, and financial leverage. The implicit bet is that the highest-scoring quality names inside the S&P 500 will compound faster than the index itself. Concentration is the point of the design."
"JQUA tracks JPMorgan's U.S. Quality Factor Index, drawing from a Russell 1000-style universe of roughly 200-plus names and blending profitability, solvency, and earnings quality. The bet is broader: own more quality companies, accept lower active share, get smoother behavior. In theory, that diversification should pay off when leadership rotates."
"2022 looked like JQUA's moment. In a year when the 10-year Treasury yield rose sharply and long-duration names sold off, JQUA fell 13.11% from January 3 to year-end. SPHQ dropped 16.09% over the same window. JQUA's broader sleeve absorbed the rate shock better, exactly as designed."
"Then the recovery reversed the order. From that January 2022 starting line through May 13, 2026, SPHQ returned 63.94% against JQUA's 58.84%. SPHQ kept leading on every standard window after that, with the 10-year Treasury hovering near 4.46% as of May 12."
Read at 24/7 Wall St.
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