The Invesco S&P 500 Quality ETF (SPHQ) is currently a source of frustration for investors who expect high-quality companies to lead during periods of market stress. While the fund has delivered a solid 7% return year to date through late February, it has struggled to maintain momentum during the recent March volatility.
Sure, the S&P 500 Index ($SPX) overall has fallen back quickly. But investors are told to “stay with quality.” However, the stock market is now in an era where so many stocks move together, I have to question old labels like “value,” “yield,” and “quality.” When the bears come to prowl, few, if any, are spared.
