Invesco’s suite of quality ETFs is garnering significant investor attention.
The Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P 500 Quality ETF (SPHQ) are among Invesco’s most popular ETFs over one-week and one-month periods, as measured by net flows.
Many investors turn to high-quality companies with consistent earnings and strong balance sheets during periods of market uncertainty and growing volatility.
XMHQ has seen $144 million in one-week flows and $323 million in one-month flows. Meanwhile, SPHQ has seen $115 million and $287 million in one-week and one-month flows, respectively.
SPHQ and XMHQ are large funds, with $6.1 billion and $1.6 billion, respectively, in assets under management. The smaller Invesco S&P SmallCap Quality ETF (XSHQ), which has $58 million in assets, has seen $5 million in net flows over a one-month period.
Comparing Invesco’s Quality ETFs
SPHQ consists of 100 companies from the S&P 500 that have high-quality scores. Three fundamental measures — return on equity, accruals ratio, and financial leverage ratio — are used to calculate the quality scores.
SPHQ includes familiar megacap names, including Microsoft (MSFT) and Apple Inc (AAPL).
XMHQ shifts exposure down the cap spectrum, providing access to quality midcap companies. Its underlying index comprises 80 securities in the S&P Midcap 400 Index. The selected companies have the highest-quality scores, determined using the same proprietary factors as SPHQ.
Companies in XMHQ include Manhattan Associates Inc (MANH) and Toro Company (TTC).
XSHQ provides exposure to high-quality small-cap stocks. The fund includes 120 securities in the S&P SmallCap 600 Index that have the highest quality score, calculated using the same measures as SPHQ and XMHQ.
XSHQ includes lesser-known names such as SM Energy Company (SM) and Mueller Industries Inc (MLI).
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