SPHQ vs SPY

SPHQ vs SPY

Which is better, SPHQ or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 43.4%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricSPHQSPY
Expense Ratio0.15%0.09%Best
AUM$18.8B$811.2B
Dividend Yield1.09%0.98%
Holdings2061,515
YTD Return+13.43%+13.54%Best
1Y Return+15.98%+16.25%Best
3Y Return (annualized)+20.97%+23.72%Best
5Y Return (annualized)+13.34%+13.95%Best
Volatility (annualized)15.4%15.1%Best
Max Drawdown-57.8%-56.5%Best
$10,000 over 5 years$18,703$19,212Best
Top 10 Weight43.4%38.2%Best
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionDec 6, 2005Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 6, 2005 to Oct 2, 2026 (20.8 years).

SPHQ vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.8 years both funds cover.

SPHQ vs SPY Performance

Invesco S&P 500 Quality ETF (SPHQ) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SPHQ returned +15.98% while SPY returned +16.25%. Year to date, SPHQ is up 13.43% versus a gain of 13.54% for SPY.

Over three years, SPHQ compounded at +20.97% per year against +23.72% for SPY; over five years the annualized figures are +13.34% and +13.95% respectively. Across the full 21-year window we track, SPY has the edge at +9.45% annualized vs +8.87%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPHQ has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.1% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -57.8% for SPHQ and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

SPHQ charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, SPHQ currently yields 1.09% against 0.98% for SPY.

Holdings Overlap

SPHQ already in SPY99.0%
SPY already in SPHQ20.8%

99.0% of SPHQ's money is in holdings SPY also owns. 20.8% of SPY's money is in holdings SPHQ also owns.

Most of SPHQ is already inside SPY. Owning both mostly buys the same companies twice.

98 positions in common, counted across the 100 positions we hold weights for in SPHQ and 504 in SPY, against full books of 206 and 1,515.

What only one of them owns

Our book lists 400 positions for SPY that do not appear in our book for SPHQ (78.5% of the fund), and 2 for SPHQ that do not appear in SPY (1.0%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in SPHQWeight in SPYDifference
AAPLApple, Inc5.64%7.45%1.81%
VVisa Inc Class A5.68%0.95%4.73%
MAMastercard Inc5.76%0.71%5.05%
LRCXLrcx Uw Equity4.07%0.52%3.55%
NFLXNetflix, Inc.4.03%0.51%3.52%
COSTCostco Wholesale Corp.3.82%0.62%3.20%
GEVGE Vernova Inc. CDR (CAD Hedged)4.02%0.36%3.66%
CSCOCisco Systems Inc. - Ordinary Shares3.63%0.66%2.97%
GEGeneral Electric Co.3.58%0.50%3.08%
SNDKSandisk Corp/De3.21%0.35%2.86%

99.0% of SPHQ is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

SPHQSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, SPHQ or SPY?

SPHQ has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option, by $6 a year on a $10,000 investment.

Which performed better, SPHQ or SPY?

Over the past year SPHQ returned +15.98% vs +16.25% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), SPHQ annualized +8.87% vs +9.45% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SPHQ or SPY?

SPHQ has been the more volatile fund at 15.4% annualized versus 15.1% for SPY. Worst drawdown: SPHQ -57.8% vs SPY -56.5%.

Should I hold both SPHQ and SPY?

SPHQ and SPY have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between SPHQ and SPY?

99.0% of SPHQ's money is in holdings SPY also owns. 20.8% of SPY's is in holdings SPHQ also owns. They hold 98 positions in common, counted across the 100 positions we hold weights for in SPHQ and 504 in SPY.

Which pays a higher dividend, SPHQ or SPY?

SPHQ yields 1.09% while SPY yields 0.98%, so SPHQ currently pays the higher dividend yield.

Is SPY better than SPHQ?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 43.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.