PowerShares ETFs

SPHQ - PowerShares S&P 500 Quality Portfolio

Equity - US Equity

Product Details

The PowerShares S&P 500® Quality Portfolio (Fund) is based on the S&P 500® Quality Index (Index).The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index tracks the performance of stocks in the S&P 500® Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio. The Fund and the Index are rebalanced and reconstituted semi-annually on the third Friday of June and December.

Effective at the close of markets on Friday, March 18, 2016, the Funds’ name, investment objective, principal investment strategy and underlying index have changed. Please see the Fund's prospectus for further information.

Key features of SPHQ:

PowerShares S&P 500 Quality Portfolio (SPHQ) offers access to stocks within the S&P 500 Index that demonstrate the greatest quality characteristics. Quality stocks are assessed for issuers' potential to produce strong profits, as measured by often-overlooked balance sheet measures of financial health. Quality stocks have historically provided lower volatility and higher risk-adjusted returns than low-quality stocks. Consider three key features of SPHQ:

  • Highest quality companies in the S&P 500 Index
  • Strong risk-adjusted return potential by investing in quality companies
  • Historical outperformace during market uncertainty

Highest quality companies in the S&P 500 Index

Quality stocks have the characteristic of strong balance sheets and stable earnings growth. SPHQ's index methodology seeks the highest quality companies within the S&P 500 Index by selecting securities based on three quality metrics including: profitability, earnings quality and financial risk.

Highest quality companies in the S&P 500 Index

For illustrative purposes only.

Strong risk-adjusted return potential by investing in quality companies

The quality screens employed by S&P have shown to enhance risk-adjusted returns by investing in companies with strong balance sheets, proven profitability and earnings quality as measured by accruals.


Profitability Earnings quality Financial risk
Measured by return on equity (ROE) Measured by accruals ratio Measured by financial leverage
ROE determines how much shareholders earned for their investment in the company. The accruals ratio factors cash flow into the assessment of a company's earnings. Financial leverage is the degree to which a company uses debt to finance operations.
High ROE implies efficient management of a firm's equity base. Cash earnings are viewed as higher quality relative to non-cash (accrual-based) earnings. Extensive use of debt can subject a company to interest rate and credit risk, resulting in unstable cash flow and earnings.

Historical outperformance during market uncertainty

Historically, during periods of market stress and uncertainty, quality companies have shown the ability to outperform, as illustrated below.

Quality versus high beta in different volatility environments

Quality versus high beta in different volatility environments

How is volatility measured?
Source: Bloomberg L.P., data from 7/18/14 – 6/30/16. Past performance is no guarantee of future results. An investor cannot invest directly in an index. Inception of the S&P 500 Quality index: July 8, 2014. VIX is the ticker symbol of the CBOE Volatility Index. Quality is represented by the S&P 500 Quality Index and High Beta is represented by the S&P 500 High Beta Index.

Quality versus high beta in different spread environments

Quality versus high beta in different spread environments

What are credit spreads?
Source: Bloomberg L.P., data from 7/18/14 – 6/30/16. Past performance is no guarantee of future results. An investor cannot invest directly in an index. The Barclays High Yield - 10 year Treasury spread is calculated by taking the Barclays US Corporate High Yield Index Yield to Worst minus the US 10 Year Treasury Yield. Yield to worst is the lowest potential yield an investor can receive on a bond without the issuer actually defaulting.
as of 08/31/2016

Morningstar Rating

Overall Rating - ETF Large Blend Category

As of 08/31/2016 the Fund had an overall rating of 4 stars out of 46 funds and was rated 5 stars out of 46 funds, 5 stars out of 39 funds and 3 stars out of 18 funds for the 3-, 5- and 10- year periods, respectively.

Morningstar details

Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effect of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable. ©2016 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. A fund is eligible for a Morningstar Rating three years after inception. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics.

as of 08/31/2016 06/30/2016

Performance

  YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Index History (%)
S&P 500 Quality Index 3.38 2.41 N/A N/A N/A N/A
S&P 500 Index 3.84 3.99 11.66 12.10 7.42 7.17
S&P 500 High Quality Rankings Index 8.90 11.08 14.28 14.15 N/A N/A
S&P 500 Quality Index 6.21 10.67 N/A N/A N/A N/A
S&P 500 Index 7.82 12.55 12.30 14.69 7.51 7.43
S&P 500 High Quality Rankings Index 11.54 16.76 14.37 16.38 N/A N/A
Fund History (%)
Fund NAV 7.89 9.94 13.66 13.59 5.82 5.67
After Tax Held 7.68 9.33 13.13 13.13 5.57 5.43
After Tax Sold 4.46 5.89 10.61 10.84 4.64 4.52
Fund Market Price 7.66 9.75 13.54 13.54 5.84 5.61
Fund NAV 10.80 15.93 13.87 15.88 7.04 5.84
After Tax Held 10.58 15.29 13.34 15.41 6.79 5.61
After Tax Sold 6.11 9.28 10.77 12.77 5.66 4.67
Fund Market Price 10.66 15.77 13.89 15.92 7.05 5.79

Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.

as of 06/30/2016

Growth of $10,000

Data beginning 10 years prior to the ending date of 06/30/2016. Fund performance shown at NAV.

S&P 500 High Quality Rankings Index* performance prior to 6/30/2010 reflects that of the original Underlying Index Value Line Timeliness Select Index. From 6/30/2010 to 3/18/2016, Index performance reflects that of the previous Underlying Index, S&P 500 High Quality Rankings Index. From 3/18/2016 forward, the Index performance reflects that of the Underlying Index, S&P 500 Quality Index AND IS NOT INTENDED FOR ANY THIRD PARTY USE.

An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

as of 09/26/2016

Sector Allocation

as of 09/22/2016

Market Cap & Style Allocations

Large-Cap Value 20.38%
Large-Cap Blend 37.23%
Large-Cap Growth 31.35%
Mid-Cap Value 3.76%
Mid-Cap Blend 5.69%
Mid-Cap Growth 1.36%
Small-Cap Value 0.23%
Small-Cap Blend -
Small-Cap Growth -

as of 09/26/2016 Top Holdings | View All

Fund Holdings subject to change

Ticker Company % of Fund
PG Procter & Gamble Co/The 5.10
VZ Verizon Communications Inc 5.07
GE General Electric Co 4.88
HD Home Depot Inc/The 4.85
MO Altria Group Inc 4.16
IBM International Business Machines Corp 4.11
PEP PepsiCo Inc 3.89
MCD McDonald's Corp 3.64
BA Boeing Co/The 3.15
MA MasterCard Inc 2.68

Distributions | View All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital
09/16/2016 09/20/2016 09/30/2016 0.09055 0.09055 - - -
06/17/2016 06/21/2016 06/30/2016 0.11273 0.11273 - - -
03/18/2016 03/22/2016 03/31/2016 - - - - -
12/18/2015 12/22/2015 12/31/2015 0.22675 0.22675 - - -
09/18/2015 09/22/2015 09/30/2015 0.11100 0.11100 - - -
06/19/2015 06/23/2015 06/30/2015 0.11986 0.11986 - - -
03/20/2015 03/24/2015 03/31/2015 0.07101 0.07101 - - -
12/19/2014 12/23/2014 12/31/2014 0.12495 0.12495 - - -
09/19/2014 09/23/2014 09/30/2014 0.09480 0.09480 - - -
06/20/2014 06/24/2014 06/30/2014 0.09728 0.09728 - - -
03/21/2014 03/25/2014 03/31/2014 0.06869 0.06869 - - -
12/20/2013 12/24/2013 12/31/2013 0.10653 0.10653 - - -
09/20/2013 09/24/2013 09/30/2013 0.07948 0.07948 - - -
06/21/2013 06/25/2013 06/28/2013 0.10234 0.10234 - - -
03/15/2013 03/19/2013 03/28/2013 0.05915 0.05915 - - -
12/21/2012 12/26/2012 12/31/2012 0.09781 0.09781 - - -
09/21/2012 09/25/2012 09/28/2012 0.07112 0.07112 - - -
06/15/2012 06/19/2012 06/29/2012 0.07951 0.07951 - - -
03/16/2012 03/20/2012 03/30/2012 0.06167 0.06167 - - -
12/16/2011 12/20/2011 12/30/2011 0.06441 0.06441 - - -
09/16/2011 09/20/2011 09/30/2011 0.05889 0.05889 - - -
06/17/2011 06/21/2011 06/30/2011 0.12334 0.12334 - - -
12/17/2010 12/21/2010 12/31/2010 0.07952 0.07952 - - -
06/19/2009 06/23/2009 06/30/2009 0.03349 0.03349 - - -
12/19/2008 12/23/2008 12/31/2008 0.01080 0.01080 - - -

Frequency Distribution of Discounts & Premiums

    Bid/Ask MidPoint Above NAV
Quarter
Ending
Days 0.00-
0.25%
0.26-
0.50%
0.51-
0.99%
1.00-
1.49%
1.50-
1.99%
≥2.00%
06/30/2016 64 29 0 0 0 0 0
03/31/2016 61 36 0 0 0 0 0
12/31/2015 64 41 0 0 0 0 0
09/30/2015 64 42 0 0 0 1 0
Year Ended 2015 252 159 1 0 0 1 0
    Bid/Ask Midpoint Below NAV
Quarter
Ending
Days 0.00-
0.25%
0.26-
0.50%
0.51-
0.99%
1.00-
1.49%
1.50-
1.99%
≥2.00%
06/30/2016 64 35 0 0 0 0 0
03/31/2016 61 25 0 0 0 0 0
12/31/2015 64 23 0 0 0 0 0
09/30/2015 64 21 0 0 0 0 0
Year Ended 2015 252 91 0 0 0 0 0

Fund Inception: 12/06/2005

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.


 Risk & Other Information

CBOE Volatility Index is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. VIX is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. An investment cannot be made into an index. The Barclays US Corporate High Yield is an unmanaged index considered representative of fixed-rate, non investment-grade debt. The S&P 500® High Beta Index consists of the 100 stocks from the S&P 500® Index with the highest sensitivity to market movements, or beta, over the past 12 months. The S&P 500® High Quality Rankings Index comprises constituents of the S&P 500 Index reflecting long-term growth and stability of earnings and dividends. The S&P 500® Quality Index is designed to track high quality stocks in the S&P 500® Index by quality score, which is calculated based on return on equity, accruals ratio and financial leverage ratio. The S&P 500® Index is an unmanaged index considered representative of the US stock market.

At the close of business on Friday, March 18, 2016, changes to the Fund's name, investment objective, principal investment strategy, and underlying index were effective. Please see the Fund's prospectus for further information.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.

S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco PowerShares Capital Management LLC (Invesco PowerShares). The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco PowerShares. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).

Note: Not all products available through all firms.

as of 09/26/2016
3:59 PM EST

SPHQ
Intraday Stats

  • Last Trade $24.92
  • Current IIV $24.91
  • Change -$0.23
  • % Change -0.91%
as of 09/26/2016
  • NAV at market close $24.91
as of 09/26/2016

Fund Yield

  • SEC 30 Day Yield 2.21%
  • Distribution Rate 1.45%
  • 12 Month Distribution Rate 1.72%
  • 30-Day SEC Unsubsidized Yield
    as of 09/23/2016
    2.13%
as of 09/26/2016

Prior Close

  • Closing Price $25.15
  • Bid/Ask Midpoint $24.93
  • Bid/Ask Prem/Disc $0.02
  • Bid/Ask Prem/Disc 0.08%
as of 06/30/2016

Fund Characteristics

  • Price/Earnings Ratio1 16.85
  • Price/Book Ratio1 5.74
  • ROE2 61.96%
  • Avg Market Cap2 $97,983MM

1 Weighted Harmonic Average

2 Weighted Average

Fund Details

  • Fund Ticker SPHQ
  • CUSIP # 73935X682
  • ISIN US73935X6821
  • Intraday NAV SPHQIV
  • Index Ticker SPXQUT
  • Index Provider S&P Dow Jones Indices LLC
  • Management Fee 0.29%
  • Total Expense Ratio 0.38%
  • Fee Waiver 0.09%
  • Net Expense Ratio 0.29%
  • Marginable Yes
  • Short Selling Yes
  • Options No
  • Exchange NYSE Arca
  • Inception Date 12/06/2005
  • # of Holdings 99
    as of 09/26/2016
as of 09/26/2016

Quick Facts

  • Previous Close $25.15
  • Open $25.02
  • Today's High $25.02
  • Today's Low $24.91
  • Today's Volume 295,522
  • 342,258 30-Day Avg Trading
    Volume
  • 52 Week High $25.84
  • 52 Week Low $21.05
  • Shares Outstanding 42.90MM
  • Market Value $1,068.8MM