What is the main difference in fees between JQUA and SPHQ?

JQUA has a lower expense ratio of 0.12% compared to SPHQ's 0.15%. While this difference seems small, expense ratios directly reduce net returns over time. A lower fee structure generally means investors retain a slightly larger portion of the fund's gross performance, assuming all other factors remain equal. Both funds charge these fees annually to cover operational costs.

How does a difference in expense ratio impact long-term investing?

Expense ratios are deducted from the fund's assets daily, so they compound over time. A 0.03% difference between JQUA (0.12%) and SPHQ (0.15%) results in slightly lower costs for JQUA holders each year. Over decades, these small annual differences can accumulate, potentially leading to a modestly larger total return for the fund with the lower fee, provided investment performance is identical.

What index do these quality ETFs track?

The provided data indicates that the specific index tracked by both JQUA and SPHQ is not available. Generally, quality factor ETFs aim to hold companies with strong balance sheets, consistent earnings, or high profitability ratios. However, without access to the specific index methodologies for these funds, investors cannot verify the exact rules used to select holdings or determine how closely they follow a standard market benchmark.

How do the top holdings differ between JQUA and SPHQ?

JQUA offers more diversified exposure with its largest holding, AAPL, weighing 2.11%. In contrast, SPHQ has a more concentrated top holding with MA at 5.81% and AAPL at 5.80%. The only shared top-10 holding between the two funds is AAPL and V. This significant lack of overlap suggests the two funds employ different selection criteria, leading to distinct portfolio structures despite both targeting quality factors.

Which fund has a stronger dividend yield?

JQUA currently offers a dividend yield of 1.05%, which is slightly higher than SPHQ's 1.03%. ETF dividends are typically paid out to investors based on the income generated by the underlying stocks within the fund. While the yield difference is minimal, JQUA provides a marginally higher income distribution per dollar invested compared to SPHQ, based on the current figures.

How does fund size affect liquidity and stability?

SPHQ has net assets of $18.6 billion, double the $9.3 billion found in JQUA. Larger funds often benefit from higher trading volumes and tighter bid-ask spreads, potentially improving liquidity. JQUA, while smaller, still holds substantial assets. Investors might consider that larger funds can offer more stability in terms of operations, but smaller funds are not inherently less liquid if they are actively traded.

What is the significance of the inception dates?

SPHQ was launched on 6 December 2005, giving it over a decade more market history than JQUA, which started on 8 November 2017. Longer track records allow investors to observe performance across various market cycles. JQUA's younger age means it has less historical data available for analysis, which may be a consideration for those who prefer funds with established long-term operational records.

How does portfolio concentration differ between the funds?

JQUA's top holdings are capped around 2.11%, indicating a broader distribution of risk. SPHQ's top holdings, such as MA at 5.81% and AAPL at 5.80%, show higher concentration. Greater concentration in SPHQ means its performance may be more sensitive to the specific stock movements of these top companies, whereas JQUA's lower individual weights suggest a more evenly spread exposure across its largest positions.

Which fund might suit an investor prioritising cost efficiency?

Investors focused on minimizing costs may lean towards JQUA due to its 0.12% expense ratio, which is lower than SPHQ's 0.15%. This cost advantage is a tangible factor that directly impacts net returns over time. However, lower fees do not guarantee better performance, and investors should weigh cost efficiency against other factors like portfolio structure and historical tracking.

Why should investors check the index methodology for these ETFs?

Since the index methodologies for both JQUA and SPHQ are not publicly disclosed in the provided data, investors cannot verify the specific 'quality' metrics used, such as return on equity or debt-to-equity ratios. Understanding the methodology is crucial to determining whether the fund's holdings align with an investor's definition of quality and to assessing the potential risks and rewards accurately.

Is comparing these funds sufficient for making an investment decision?

Comparing JQUA and SPHQ provides useful insights into fees, holdings, and yields, but it is not sufficient on its own. Investors should also consider their overall portfolio diversification, risk tolerance, and investment horizon. Sector weights are not available for either fund, limiting the ability to compare industry exposure. This comparison is educational and does not constitute financial advice.

JQUA vs SPHQ

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare JQUA (JP Morgan US Quality Factor ETF) and SPHQ (Invesco S&P 500 Quality ETF) on fees, holdings, dividends, and market tracking. JQUA has a 0.12% expense ratio; SPHQ has 0.15%. Both focus on large blend quality factors. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

JQUA

Metric

SPHQ

0.12%

Expense Ratio

0.15%

1.05%

Dividend Yield

1.03%

$9.28B

Net Assets

$18.62B

312

Holdings

102

Nov 8, 2017

Inception Date

Dec 6, 2005

–

Index Tracked

–

Large Blend

Fund Category

Large Blend

JQUA costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	JQUA	SPHQ
AAPLApple Inc.	2.11%	5.80%
VVisa Inc.	1.74%	5.75%

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Investment Analysis

JQUA

Pros

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cons
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Considerations

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SPHQ

Pros

Lower expense ratio than SPHQ with 0.12% vs 0.15%.
More diversified with top holding weight around 2.11%.
Stronger dividend yield of 1.05% vs SPHQ's 1.03%.

Considerations

Younger fund with November 2017 inception date.
Small net assets of $9.3 billion compared to SPHQ.
Index methodology not publicly disclosed.

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About JQUA and SPHQ

JQUA (JQUA)

The JP Morgan US Quality Factor ETF (JQUA) is an exchange-traded fund designed to help investors gain exposure to high-quality US equities. With a Large Blend category, it targets companies exhibiting strong balance sheets, consistent earnings, and favourable cash flow characteristics. Since its inception in November 2017, the fund has grown significantly, managing net assets of USD 9.28 billion across 312 holdings. It offers a relatively low expense ratio of 0.12%, making it an accessible option for those seeking factor-based strategies without heavy costs. Investors receive a dividend yield of 1.05%, reflecting the fund's focus on mature, financially sound companies. As with any investment, values can rise and fall, and returns are not guaranteed, so understanding the underlying quality factors is essential for suitability.

SPHQ (SPHQ)

Invesco S&P 500 Quality ETF (SPHQ) is a passively managed exchange-traded fund that seeks exposure to S&P 500 companies exhibiting quality characteristics such as stronger profitability, stable earnings and lower leverage. It provides investors with a rules-based, diversified way to tilt a large-cap US equity allocation towards firms deemed higher quality within the S&P 500. SPHQ trades like a stock on exchanges, offering intraday liquidity and the convenience of an ETF wrapper, but its share price and NAV can diverge slightly during the trading day. Investors should note this is not an actively managed stockpick — performance follows the underlying index and will rise or fall with market conditions. Consideration should be given to how a quality tilt fits within a broader portfolio, fees, tax treatment and the ETF’s liquidity; past performance does not guarantee future returns and values can go down as well as up.

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JQUA vs SPHQ

Fund Snapshot