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SPHQ invests in 100 S&P 500 Index stocks with high return on equity, low financial leverage, and accruals ratios, which is a really elegant way of measuring quality. ROE has some drawbacks and may not be the most ideal capital efficiency ratio, but I verified that SPHQ is also strong on ROCE and several margin metrics. SPHQ's Index reconstituted last month, pushing tech sector exposure near 40% and more in line with peers like QUAL and JQUA as well as the S&P 500 Index, its benchmark.
Goldman Sachs sees AI fueling the next inflation wave. Here's how ETFs can help position portfolios.
Investors have been focused heavily on tech, growth, and AI stocks over the past few years. Now, the markets are getting more volatile and questions are arising about whether the AI rally is running out of steam.
It's one thing to gather momentum and another to maintain it. The S&P 500 Momentum has effectively done both, gaining 7.5% during the month of June while maintaining a 44.4% gain that led all S&P factor-based equity exposure during the full second quarter.
SPHQ reaches a 52-week high as quality investing regains favor in a volatile market.
Stretched tech valuations are reviving AI bubble fears. These ETFs can help navigate the uncertainty.
Uncertainty over the Washington-Tehran deal, a pullback in AI stocks and a hawkish Fed outlook are reinforcing the case for quality ETFs as a defensive play.
S&P 500 earnings growth is forecast to come in at 22% in 2026 and 15% in 2027. Much of that is expected to be driven by artificial intelligence (AI) infrastructure development.