SPHQ holds nearly 130 stocks, none of which account for more than 1.3% of the fund’s weight. Underscoring SPHQ’s usefulness as protection against rising interest rates, industrials and consumer discretionary, two of the best sectors in rising rate environments, combine for over 45% of the ETF’s weight. Staples and health care combine for almost 30%.
“Among the ETF’s 10 largest holdings used in our analysis, four of them are S&P Capital IQ Strong Buys or Buys. Overall, while SPHQ earns neutral ranking inputs for S&P Capital IQ and S&P Capital IQ Fair Value, it earns favorable inputs for S&P Capital IQ Qualitative Risk Assessments, S&P Capital IQ Quality Rankings and Standard & Poor’s Credit Ratings,” said S&P Capital IQ.
While SPHQ’s average daily volume is just 55,000 share, the ETF’s bid/ask spread is fairly tight at three cents, according to S&P Capital IQ.
Including paid dividends, SPHQ outperformed the S&P 500 twice over the past four years while tying the benchmark index in 2013.
PowerShares S&P 500 High Quality Portfolio
