We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For investors seeking momentum, PowerShares S&P 500 Quality Portfolio (SPHQ - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 17.3% from its 52-week low price of $25.89/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SPHQ in Focus
SPHQ provides exposure to stocks within the S&P 500 Index that demonstrate the greatest quality characteristics based on three fundamental measures — return on equity, accruals ratio and financial leverage ratio. With a basket of 99 stocks, it has key holdings in industrials, information technology, consumer discretionary and consumer staples. It charges 29 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The quality corner of the broad investing world has been an area to watch lately as the uncertainty in the final tax bill has rekindled investors’ faith in products that provide stability and safety. Quality stocks consistently deliver superior risk-adjusted returns than the broader market over the long term while reduce risk in a portfolio. More importantly, these stocks generally outperform in a crumbling market.
More Gains Ahead?
Currently, SPHQ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
U.S. Quality ETF (SPHQ) Hits New 52-Week High
For investors seeking momentum, PowerShares S&P 500 Quality Portfolio (SPHQ - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 17.3% from its 52-week low price of $25.89/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SPHQ in Focus
SPHQ provides exposure to stocks within the S&P 500 Index that demonstrate the greatest quality characteristics based on three fundamental measures — return on equity, accruals ratio and financial leverage ratio. With a basket of 99 stocks, it has key holdings in industrials, information technology, consumer discretionary and consumer staples. It charges 29 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The quality corner of the broad investing world has been an area to watch lately as the uncertainty in the final tax bill has rekindled investors’ faith in products that provide stability and safety. Quality stocks consistently deliver superior risk-adjusted returns than the broader market over the long term while reduce risk in a portfolio. More importantly, these stocks generally outperform in a crumbling market.
More Gains Ahead?
Currently, SPHQ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>