24/7 Wall Street
16 May 2026, 13:20 UTC · 2w ago
Source · https://247wallst.com/investing/2026/05/16/sphq-outpaced-jqua-by-500-basis-points-over-five-years-despite-being-the-riskier-trade/
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The concentrated Invesco S&P 500 Quality ETF (SPHQ) outperformed the broader JPMorgan U.S. Quality Factor ETF (JQUA) with a 63.94% return versus 58.84% from January 2022 through May 13, 2026. — A multi-year outperformance of a concentrated quality factor ETF over a diversified alternative validates the risk premium for concentration and directly favors SPHQ fund flows over JQUA.
+0.40During the 2022 rate shock, JQUA fell 13.11% while the more concentrated SPHQ dropped 16.09%, proving JQUA's broader sleeve absorbed the rate shock better as designed. — A 3% underperformance during a rate-driven repricing highlights SPHQ's vulnerability to rising yields, which dampens risk appetite for the concentrated fund in a hawkish macro environment.
-0.30A sharp, rate-driven repricing of the largest quality names is the specific environment where JQUA's diversification stops underperforming and outperforms SPHQ. — Identifying the precise macro catalyst that would reverse the current leadership trend provides a tactical allocation signal favoring JQUA over SPHQ if rates spike.
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The author notes that SPHQ has been the stronger choice across calendar windows and full cycles, outperforming JQUA in most scenarios.
While described as a 'softer ride', it is noted as having trailing returns compared to SPHQ.
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