The High Quality ETF

I often talk about the importance of investing in high quality stocks. There actually is an S&P 500 High Quality ETF (SPHQ). The ETF has done very well the last few years.

Here’s something interesting about high quality stocks as an asset class. Check out the relative strength of SPHQ (meaning, dividing its price by the S&P 500) during the last year.

Notice how it spiked last August when the market got scared and there were all those ETF issues. In other words, the SPHQ is also a fear trade. When people get scared, they run all at once towards quality.

Posted by Eddy Elfenbein on January 5th, 2016 at 3:19 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.