Invesco S&P International Developed Quality ETF (IDHQ)IDHQ

ETF Invesco S&P International Developed Quality ETF (SPHQ)

Profile:

Invesco S&P International Developed Quality ETF (SPHQ) is an exchange-traded fund that invests in high-quality large and mid-cap companies from developed countries outside of the United States. It tracks the S&P Developed ex-US Quality Index, which selects stocks based on factors like financial strength, profitability, and growth potential.

Objective:

The primary objective of SPHQ is to provide investors with long-term capital appreciation by investing in a portfolio of high-quality international stocks.

Issuer:

Invesco is a global investment management firm with over $1.4 trillion in assets under management. The firm has a strong reputation for its expertise in both active and passive investing strategies. Invesco is a reliable and well-established company with a long history of managing ETFs.

Market Share:

SPHQ has a market share of approximately 0.5% in the international developed quality ETF space.

Total Net Assets:

As of November 2023, SPHQ has approximately $1.5 billion in total net assets.

Moat:

SPHQ's competitive advantages include:

• Focus on high-quality companies: The ETF's focus on high-quality companies can help to mitigate risk and provide investors with more stable returns over the long term.
• Diversification: The ETF is diversified across multiple countries and sectors, which can help to reduce the impact of any single event on its performance.
• Low expense ratio: The ETF has a relatively low expense ratio of 0.35%, which can help to improve returns for investors over time.

Financial Performance:

SPHQ has performed well since its inception in 2013. The ETF has outperformed its benchmark index, the MSCI EAFE Index, over the past 3, 5, and 10 years.

Growth Trajectory:

SPHQ is expected to continue to grow in popularity as investors seek out ways to diversify their portfolios and gain exposure to high-quality international stocks.

Liquidity:

SPHQ has an average trading volume of approximately 100,000 shares per day. The ETF also has a tight bid-ask spread, which means that investors can buy and sell shares of the ETF at a relatively low cost.

Market Dynamics:

The performance of SPHQ can be affected by several factors, including:

• Global economic conditions: A strong global economy can lead to higher returns for international stocks.
• Interest rates: Rising interest rates can make it more expensive for companies to borrow money, which can lead to lower stock prices.
• Currency fluctuations: Changes in currency exchange rates can impact the value of SPHQ's investments.

Competitors:

SPHQ's key competitors include:

• iShares Edge MSCI International Quality Factor ETF (QUAL)
• Vanguard International Quality Factor ETF (VIOV)
• SPDR S&P International Developed Quality ETF (IDHQ)

Expense Ratio:

The expense ratio for SPHQ is 0.35%.

Investment Approach and Strategy:

SPHQ tracks the S&P Developed ex-US Quality Index, which selects stocks based on factors like financial strength, profitability, and growth potential. The ETF invests in a diversified portfolio of large and mid-cap companies from developed countries outside of the United States.

Key Points:

• Invests in high-quality international stocks
• Diversified across multiple countries and sectors
• Low expense ratio
• Outperformed its benchmark index over the past 3, 5, and 10 years
• Expected to continue to grow in popularity

Risks:

• Market risk: The value of SPHQ's investments can decline due to market conditions.
• Currency risk: Changes in currency exchange rates can impact the value of SPHQ's investments.
• Interest rate risk: Rising interest rates can make it more expensive for companies to borrow money, which can lead to lower stock prices.

Who Should Consider Investing:

SPHQ is a suitable investment for investors who are looking for:

• Long-term capital appreciation: SPHQ is designed to provide investors with long-term capital appreciation by investing in a portfolio of high-quality international stocks.
• Diversification: The ETF is diversified across multiple countries and sectors, which can help to reduce the impact of any single event on its performance.
• Low expenses: The ETF has a relatively low expense ratio of 0.35%, which can help to improve returns for investors over time.

Fundamental Rating Based on AI:

8.5/10

SPHQ has a strong fundamental rating based on AI analysis. The ETF has a solid track record of performance, a diversified portfolio, and a low expense ratio. However, investors should be aware of the risks associated with investing in international stocks, such as market risk and currency risk.

Resources and Disclaimers:

• Invesco S&P International Developed Quality ETF website: https://us.invesco.com/products/etf/profile/portfolio/sphq
• Morningstar: https://www.morningstar.com/etfs/arcx/sphq/quote
• ETF.com: https://www.etf.com/etfanalytics/overview.aspx?sym=SPHQ

Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.