Invesco S&P 500 Quality ETF

SPHQ

Market cap $19.8B

Goldman Sachs sees AI fueling the next inflation wave. Here's how ETFs can help position portfolios.

Investors have been focused heavily on tech, growth, and AI stocks over the past few years. Now, the markets are getting more volatile and questions are arising about whether the AI rally is running out of steam.

It's one thing to gather momentum and another to maintain it. The S&P 500 Momentum has effectively done both, gaining 7.5% during the month of June while maintaining a 44.4% gain that led all S&P factor-based equity exposure during the full second quarter.

SPHQ reaches a 52-week high as quality investing regains favor in a volatile market.

Stretched tech valuations are reviving AI bubble fears. These ETFs can help navigate the uncertainty.

Uncertainty over the Washington-Tehran deal, a pullback in AI stocks and a hawkish Fed outlook are reinforcing the case for quality ETFs as a defensive play.

S&P 500 earnings growth is forecast to come in at 22% in 2026 and 15% in 2027. Much of that is expected to be driven by artificial intelligence (AI) infrastructure development.

The quality factor tends to earn its keep when investors start worrying about balance sheets again, and the Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) is making that case in real time.

The recent rotation out of AI-linked stocks highlights the risks of a narrow market rally. As concentration risk rises, defensive ETFs could help investors build more resilient portfolios.

Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Invesco S&P 500 Quality ETF (SPHQ) is a smart beta exchange traded fund launched on 12/06/2005.