How do the expense ratios of SPHQ and VOO differ, and what does that cost mean over time?

SPHQ has an annual expense ratio of 0.15%, whereas VOO charges 0.03%. This represents a 0.12 percentage point difference. For a £10,000 investment, SPHQ would cost £15 per year compared to £3 for VOO. While this seems small, fees compound over decades. Lower costs leave more invested, potentially boosting final returns. Beginners should note that a higher fee does not guarantee higher performance, but it does create a steeper hurdle for the fund to match its benchmark's gross return.

What is the difference in fund size and launch dates between SPHQ and VOO?

SPHQ was launched on 6 December 2005 and holds net assets of $18.6 billion. In contrast, VOO launched on 7 September 2010 but has grown to $1.08 trillion in net assets. Despite being younger, VOO is significantly larger. Fund size affects liquidity and tracking precision. A larger fund like VOO may have tighter bid-ask spreads, reducing transaction costs. However, SPHQ's smaller size allows it to potentially implement its specific strategy without the constraints of massive scale, though both are considered large by retail standards.

Why are dividend yields important when comparing these two ETFs?

Both SPHQ and VOO offer a dividend yield of 1.03%. This figure indicates the cash payout relative to the share price. For beginners, it is crucial to understand that ETF distributions come from dividends and interest collected by the underlying holdings. A yield of 1.03% is modest and suggests growth orientation rather than income maximisation. Yield alone does not determine total return; capital appreciation is key. If a fund's price falls, the yield may look higher, but the investor still loses value. Always consider yield as part of total return, not as standalone income.

How similar are the top holdings in SPHQ and VOO?

The portfolios differ significantly. The only overlap in their top ten holdings is Apple (AAPL). SPHQ's top stocks include Mastercard (MA) and Visa (V), focusing on quality metrics. VOO's top holdings are led by Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT), reflecting market-cap weighting. This disparity means that owning both provides limited diversification overlap but exposes investors to different drivers. SPHQ selects companies based on quality factors, while VOO holds all large-cap US firms. Therefore, performance divergence occurs when quality stocks outperform high-growth tech leaders, or vice versa.

What investing goals are typically associated with SPHQ versus VOO?

SPHQ is often aligned with investors seeking quality factors within the S&P 500, potentially aiming for stability or risk-adjusted returns. It filters companies based on quality metrics rather than holding all constituents. VOO, as a total market-cap weighted S&P 500 fund, targets broad exposure to US large-cap equities. Investors choose VOO for general market participation and low costs. SPHQ suits those believing quality factors can add value or reduce downside risk. Neither is inherently better; they serve different strategic purposes. One seeks factor-based performance, while the other seeks efficient market replication.

How do sector exposures differ between these two funds?

Specific sector weightings are not available for either SPHQ or VOO according to the provided data. Without this breakdown, investors cannot precisely determine sector concentration differences. Generally, quality-focused funds may underweight sectors with volatile earnings, while cap-weighted funds like VOO reflect the overall market's sector distribution. Beginners should exercise caution when comparing these funds without detailed sector data, as significant differences in technology or financial sector exposure could drive performance divergence despite both being classified as Large Blend equity ETFs.

What index tracking approaches are used by SPHQ and VOO?

The specific index tracked by each fund is not available in the provided data. However, VOO typically tracks the S&P 500 Index, aiming for exact replication of large-cap US performance. SPHQ usually follows a quality-stratified subset of the S&P 500, selecting constituents based on financial quality metrics. While both target US large caps, the methodology differs. One seeks broad market return, while the other attempts to extract factor premium. Investors should note that without exact index details, they must rely on fund factsheets for precise rebalancing rules and constituent selection criteria.

How does the inclusion of non-traditional tech firms like Netflix affect these funds?

SPHQ includes Netflix (NFLX) at 3.98% in its top ten, indicating its quality metrics accommodate this streaming giant. VOO's top holdings list does not show Netflix in the top ten, with Nvidia, Apple, and Microsoft dominating. This suggests SPHQ may have higher exposure to consumer discretionary or media sectors relative to VOO's top concentration. The difference highlights how factor screens can alter portfolio composition compared to pure market-cap weighting, potentially shifting sector bets even within the same large-cap universe.

Which fund has a lower expense ratio and why might that matter for beginners?

VOO has the lower expense ratio at 0.03% annually, compared to SPHQ's 0.15%. For beginners, this 0.12 percentage point difference impacts net returns over long horizons. Lower fees make VOO a cost-effective tool for core portfolio building. However, if SPHQ delivers superior risk-adjusted returns due to its quality strategy, the higher fee might be justified. Beginners should weigh the certainty of low costs against the potential, but unguaranteed, benefit of active factor exposure. Cost alone is a poor predictor of final outcome.

How do inception dates influence the historical data available for analysis?

SPHQ was launched earlier, on 6 December 2005, while VOO started on 7 September 2010. This means SPHQ has a longer operational history, potentially offering more data points regarding its performance through different market cycles, such as the 2008 financial crisis. VOO's shorter track record, despite its massive current size, covers fewer extreme market events. Beginners should use this historical depth to assess how each fund handled volatility, noting that past performance is not indicative of future results but provides context for fund management experience.

SPHQ vs VOO

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

This page compares the Invesco S&P 500 Quality ETF (SPHQ) and the S&P 500 Vanguard ETF (VOO), detailing expense ratios, top holdings, dividend yields and tracking approaches to help you assess their distinct large-blend strategies. Educational content, not financial advice.

This page compares the Invesco S&P 500 Quality ETF (SPHQ) and the S&P 500 Vanguard ETF (VOO), detailing expense ratios, top holdings, dividend yields and tracking approaches to help you assess their d...

Fund Snapshot

Key Fund Metrics

SPHQ

Metric

VOO

0.15%

Expense Ratio

0.03%

1.03%

Dividend Yield

1.03%

$18.62B

Net Assets

$1.08T

102

Holdings

516

Dec 6, 2005

Inception Date

Sep 7, 2010

–

Index Tracked

–

Large Blend

Fund Category

Large Blend

VOO costs about $12.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SPHQ	VOO
AAPLApple Inc.	5.80%	7.03%

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Investment Analysis

SPHQ

Pros

Investing in this ETF costs 0.15% annually
The fund's net assets total $18.6 billion
This fund was launched on 6 December 2005.

Considerations

This ETF's annual expense ratio is 0.15%.
This fund's net assets stand at $18.6 billion
The fund's index tracked and sector weights are not available

VOO

Pros

The fund's net assets stand at $1.08 trillion
This fund costs only 0.03% annually
This fund was launched on 7 September 2010.

Considerations

The fund’s index tracked is not available
Sector weights data is unavailable for this fund
Only one of the ten largest holdings overlaps with Fund A's top ten

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About SPHQ and VOO

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.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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SPHQ vs VOO

Fund Snapshot