Invesco’s suite of quality ETFs is garnering significant investor attention.
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.
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.
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.
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