“Prior to June 30, 2010, the fund did not have a quality mandate. On that date it switched to the S&P 500 High Quality Rankings Index following a period of poor performance,” according to Morningstar. “It switched again in March 2016 to the S&P 500 Quality Index, which applies a more-transparent quantitative methodology. Invesco cited this transparency as the reason for the change. Because of these changes, the fund does not have a long record tracking its current benchmark.”
The quality factor is, at least in theory, sector agnostic. SPHQ allocates over 30% of its weight to technology stocks and a combined 22.37% to healthcare and consumer staples names.
Morningtar boosted its rating on SPHQ to Silver from Bronze.
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