How do quality and value factors differ in ETFs?

SPHQ focuses on quality by screening for strong balance sheets and stable earnings, potentially reducing financial risk. VTV tracks the value factor, targeting stocks trading below intrinsic value, which can include cyclical sectors like financials and energy. This means SPHQ emphasises fundamental resilience, while VTV aims for mean-reversion opportunities. Both are subsets of the US large-cap market but use different methodologies to select holdings.

What do inception dates indicate about ETF performance history?

SPHQ launched on 6 December 2005, while VTV started on 26 January 2004. VTV has a longer track record, offering more historical data for analysis. However, inception date alone does not guarantee superior performance. The time difference may affect how each fund experienced various market cycles. Investors should consider how long each fund operated during bull and bear markets when evaluating consistency.

What does the 'top ten holdings concentration' metric reveal?

SPHQ’s top ten holdings exceed 38% of assets, indicating higher concentration in selected quality stocks. VTV does not provide a specific top-ten percentage, but its largest single holding is 3.94%. Higher concentration can increase volatility but may enhance returns if those holdings outperform. Lower concentration typically reduces single-stock risk but can dilute performance. This metric helps gauge diversification levels within each fund.

How do the expense ratios of SPHQ and VTV compare?

VTV has a lower expense ratio of 0.03% versus SPHQ’s 0.15%, meaning VTV charges 12 basis points less annually. Over time, this difference can impact net returns, especially in long-term investing. Lower fees provide a structural advantage but do not guarantee better performance, as factor exposure and stock selection also matter.

What are the income generation profiles of these funds?

VTV offers a higher dividend yield at 1.85% compared to SPHQ’s 1.03%. This difference of 0.82 percentage points makes VTV more attractive for income-focused investors seeking regular payouts. SPHQ’s lower yield aligns with its quality factor, which prioritises stable companies potentially focused on reinvesting earnings for growth rather than distributing high dividends.

Do SPHQ and VTV have overlapping holdings?

Yes, Cisco Systems (CSCO) is the sole shared top-ten holding between SPHQ and VTV. SPHQ holds CSCO at 3.62% while VTV holds it at 1.43%. This minimal overlap indicates that the funds pursue distinct stock selections based on quality versus value criteria, leading to different risk-return profiles despite both targeting large-cap US equities.

How do net assets affect liquidity for these ETFs?

VTV has $191.1 billion in net assets versus SPHQ’s $18.6 billion. This substantial size difference means VTV likely offers tighter bid-ask spreads and higher trading volumes. Larger asset bases reduce the risk of price distortions during high-volume trading periods. While both funds are liquid, VTV’s size provides greater market-making depth, facilitating easier entry and exit for investors.

Are sector weights disclosed for either fund?

Sector weights are not available for either SPHQ or VTV in the provided data. Without this information, investors cannot precisely assess geographic or industry diversification risks. The absence of detailed sector weight disclosures hinders accurate portfolio risk assessment, particularly when comparing against broad market benchmarks or determining overlap with existing holdings.

Which issuers manage these funds and does it matter?

SPHQ is managed by Invesco and VTV by Vanguard. Both are established asset managers with mature operational processes. Invesco specialises in factor strategies, while Vanguard is known for low-cost passive investing. The issuer can influence fund operations, tracking efficiency, and investor support. Understanding the fund provider helps assess operational reliability and fee structures, though both providers have long-standing industry reputations.

What are the main investment risks for each fund?

SPHQ risks include higher concentration (top ten holdings exceed 38%) and no sector data disclosure, limiting transparency. VTV faces value trap risks by excluding high-growth tech stocks, potentially lagging in growth markets. Its lower concentration (top holding at 3.94%) may dilute performance. Both are subject to market volatility, with SPHQ exposing investors to balance sheet quality risks and VTV to cyclical value underperformance.

What are the main investment risks for each fund?

SPHQ risks include higher concentration (top ten holdings exceed 38%) and no sector data disclosure, limiting transparency. VTV faces value trap risks by excluding high-growth tech stocks, potentially lagging in growth markets. Its lower concentration (top holding at 3.94%) may dilute performance. Both are subject to market volatility, with SPHQ exposing investors to balance sheet quality risks and VTV to cyclical value underperformance.

SPHQ vs VTV

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

Compare Invesco S&P 500 Quality ETF (SPHQ) and Vanguard Value ETF (VTV) on fees, holdings, dividends and market tracking. SPHQ carries a 0.15% expense ratio while VTV charges 0.03%; net assets, yields and inception dates differ. Sector weights are not available. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPHQ

Metric

VTV

0.15%

Expense Ratio

0.03%

1.03%

Dividend Yield

1.85%

$18.62B

Net Assets

$191.07B

102

Holdings

319

Dec 6, 2005

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Blend

Fund Category

Large Value

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

Shared Top Holdings

Holding	SPHQ	VTV
CSCOCisco Systems, Inc.	3.62%	1.43%

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Investment Analysis

SPHQ

Pros

The quality factor screens out weak balance sheet metrics, potentially reducing financial risk.
Incubated by the established asset manager, the fund benefits from mature operational processes.
The portfolio's low dividend yield may appeal to investors seeking capital appreciation rather than income.

Considerations

The expense ratio of zero point one five percent is significantly higher than standard broad market funds.
Limited sector diversification is evident in a top ten concentration exceeding thirty-eight percent of assets.
The absence of detailed sector weight disclosures hinders precise portfolio risk assessment for investors.

VTV

Pros

Cost efficiency is exceptional, featuring an expense ratio of only three basis points for passive management.
Strong income generation from a yield of one point eight five percent, substantially exceeding Fund A.
Extensive liquidity provided by massive net assets of over one hundred ninety billion dollars, ensuring tight trading spreads.

Considerations

Investors face value trap risk, as the fund excludes high-growth technology stocks prevalent in other indices.
A relatively low single stock concentration in the top holding at three point nine percent indicates diversification but potential performance dilution.
Performance has historically lagged the S&P Five Hundred, especially during strong bull markets for growth companies.

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About SPHQ and VTV

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.

VTV (VTV)

The Vanguard Value ETF (VTV) is a large-cap value fund designed to track the performance of US large-capitalisation companies considered to have value characteristics. Launched in January 2004, it currently holds a diverse portfolio of 319 stocks. With a very low expense ratio of just 0.03%, it offers investors a cost-effective way to access established US companies that may be trading at lower prices relative to their fundamental metrics. The fund has accumulated net assets of approximately USD 191.07 billion, indicating significant liquidity and investor confidence. It currently provides a dividend yield of 1.85%. While value strategies can offer potential advantages during market rotations, like all investments, the value of shares can fall as well as rise, and returns are not guaranteed. This fund is generally suitable for investors seeking diversified exposure to the US large-cap value segment as part of a broader portfolio strategy.

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SPHQ vs VTV

Fund Snapshot