SPHQ’s largest sector weight is 27.7% to industrials. That combined with an almost 19% weight to the consumer discretionary sector give the ETF some value leverage. An almost 10% weight to the health care sector, the ETF’s fourth-largest sector weight, has proven beneficial as well.
Interestingly, SPHQ’s 14 health care holdings do not include any biotechnology names and only feature two blue chip pharmaceuticals stocks. The bulk of SPHQ’s health care holdings are medical device manufacturers and health care services providers. That is a positive at a time when the latter group is entering its strong seasonal period and the iShares U.S. Medical Devices ETF (NYSEArca: IHI) is joining SPHQ in the new all-time high club. [Time Again for This Health Care ETF]
Year-to-date, SPHQ has added $63.1 million in new assets, ranking it among the top-25 PowerShares ETFs for new assets added. That could be a sign of increased institutional use of SPHQ, which just happens to be one of the oldest alternatively weighted or smart beta ETFs on the market today. [Institutions Love Smart Beta ETFs]
PowerShares S&P 500 High Quality Portfolio