We recently updated our U.S. large-cap equity targets, shifting a portion of our core equity holdings to the S&P 500 Quality ETF (symbol: SPHQ).
Over the past year, we have observed increasing federal government involvement in corporate outcomes, which we believe is raising both industry-and company-specific risk. A recent example is the President’s announcement that defense companies will face restrictions on dividends and share repurchases until production objectives are met.
In this environment, we see a strengthening case for broader diversification while remaining true to our philosophy of owning high-quality assets at fair prices. We are augmenting our core equity holdings with the S&P 500 Quality ETF, a low-cost, passive ETF that possesses similar characteristics.
SPHQ holds approximately 100 companies selected from the S&P 500 based on a composite quality score derived from multiple fundamental measures.
We continue to manage portfolios with a forward-looking mindset, seeking to optimize risk-adjusted outcomes for clients.
We hope this summary is helpful. Please feel free to reach out with any questions.
