SPHQ vs. FDL

Last updated Jun 13, 2026

SPHQ (Invesco S&P 500 Quality ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - SPHQ is a S&P 500 fund tracking the S&P 500 Quality Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, SPHQ returned 15.27%/yr vs 11.39%/yr for FDL. A 0.68 correlation means they provide meaningful diversification when combined. SPHQ charges 0.15%/yr vs 0.43%/yr for FDL.

Performance

SPHQ vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Quality ETF (SPHQ) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with SPHQ having a 16.79% return and FDL slightly lower at 16.26%. Over the past 10 years, SPHQ has outperformed FDL with an annualized return of 15.27%, while FDL has yielded a comparatively lower 11.39% annualized return.

SPHQ

• 1D: 1.02%
• 1M: 5.98%
• YTD: 16.79%
• 6M: 15.77%
• 1Y: 24.32%
• 3Y*: 22.40%
• 5Y*: 14.55%
• 10Y*: 15.27%

FDL

• 1D: 0.91%
• 1M: 3.46%
• YTD: 16.26%
• 6M: 16.15%
• 1Y: 24.87%
• 3Y*: 19.25%
• 5Y*: 13.10%
• 10Y*: 11.39%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SPHQ vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPHQ Invesco S&P 500 Quality ETF	16.79%	13.25%	25.44%	24.83%	-15.76%	28.03%	17.36%	33.64%	-7.10%	19.10%
FDL First Trust Morningstar Dividend Leaders Index Fund	16.26%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between SPHQ and FDL is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Mar 15, 2006	0.68

Over the past year, the correlation between SPHQ and FDL has dropped to 0.36 - well below their long-term average of 0.68, suggesting their price drivers have been diverging.

SPHQ vs. FDL - Sectors Allocation Comparison

Sectors	SPHQ	FDL
Technology	28.1%	1.1%
Industrials	24.3%	3.8%
Consumer Defensive	15.4%	14.7%
Financial Services	13.3%	15.1%
Healthcare	8.4%	16.8%
Consumer Cyclical	4.6%	3.8%
Basic Materials	2.2%	0.3%
Communication Services	2.0%	10.6%
Utilities	1.0%	6.5%
Energy	0.7%	27.3%
Real Estate	-	-

Return for Risk

SPHQ vs. FDL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SPHQ

SPHQ Risk / Return Rank: 66
SPHQ Sharpe Ratio Rank: 65
SPHQ Sortino Ratio Rank: 68
SPHQ Omega Ratio Rank: 60
SPHQ Calmar Ratio Rank: 63
SPHQ Martin Ratio Rank: 73

FDL

FDL Risk / Return Rank: 84
FDL Sharpe Ratio Rank: 80
FDL Sortino Ratio Rank: 87
FDL Omega Ratio Rank: 76
FDL Calmar Ratio Rank: 93
FDL Martin Ratio Rank: 83

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SPHQ vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Quality ETF (SPHQ) and First Trust Morningstar Dividend Leaders Index Fund (FDL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SPHQ	FDL	Difference
Sharpe ratio: Return per unit of total volatility	1.85	2.22	-0.37
Sortino ratio: Return per unit of downside risk	2.67	3.41	-0.74
Omega ratio: Gain probability vs. loss probability	1.32	1.39	-0.07
Calmar ratio: Return relative to maximum drawdown	2.75	5.85	-3.10
Martin ratio: Return relative to average drawdown	11.76	14.28	-2.52

SPHQ vs. FDL - Sharpe Ratio Comparison

The current SPHQ Sharpe Ratio is 1.85, which is comparable to the FDL Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of SPHQ and FDL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SPHQ vs. FDL - Drawdown Comparison

The maximum SPHQ drawdown since its inception was -57.83%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for SPHQ and FDL.

Drawdown Indicators

	SPHQ	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-57.83%	-65.93%	+8.10%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-4.27%	-4.63%
Max Drawdown (3Y) Largest decline over 3 years	-16.57%	-12.24%	-4.33%
Max Drawdown (5Y) Largest decline over 5 years	-25.04%	-16.46%	-8.58%
Max Drawdown (10Y) Largest decline over 10 years	-31.60%	-41.40%	+9.80%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.69%	-9.64%	-1.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	1.76%	+0.33%

Volatility

SPHQ vs. FDL - Volatility Comparison

Invesco S&P 500 Quality ETF (SPHQ) has a higher volatility of 4.92% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 2.70%. This indicates that SPHQ's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPHQ	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.92%	2.70%	+2.22%
Volatility (6M) Calculated over the trailing 6-month period	10.83%	7.69%	+3.14%
Volatility (1Y) Calculated over the trailing 1-year period	13.18%	11.25%	+1.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.53%	14.31%	+2.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.90%	17.11%	+0.79%

SPHQ vs. FDL - Expense Ratio Comparison

SPHQ has a 0.15% expense ratio, which is lower than FDL's 0.43% expense ratio.

Dividends

SPHQ vs. FDL - Dividend Comparison

SPHQ's dividend yield for the trailing twelve months is around 1.03%, less than FDL's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.58%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
SPHQ Invesco S&P 500 Quality ETF	1.03%	1.09%	1.15%	1.42%	1.85%	1.19%	1.55%	1.51%	1.85%	1.57%	1.67%	2.29%

Frequently Asked Questions

Can I hold both SPHQ and FDL in my portfolio?

SPHQ and FDL have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPHQ or FDL?

SPHQ has higher volatility (4.92%) compared to FDL (2.70%). In terms of maximum drawdown, SPHQ dropped -57.83% vs FDL's -65.93%.

Which ETF is better, SPHQ or FDL?

On 10-year performance, SPHQ leads with 15.27% vs 11.39% for FDL. On fees, SPHQ is cheaper at 0.15% per year. On volatility, FDL has been the lower-risk option at 2.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPHQ or FDL?

Over the 10-year period, SPHQ has performed better with a 15.27% return vs 11.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPHQ or FDL?

SPHQ is cheaper with a 0.15% expense ratio, compared with 0.43% for FDL.

Which ETF pays a higher dividend yield, SPHQ or FDL?

FDL has the higher dividend yield at 3.58%, compared with 1.03% for SPHQ.

What is the main difference between SPHQ and FDL?

SPHQ is categorized as S&P 500, while FDL is Large Cap Value Equities. SPHQ tracks S&P 500 Quality Index, while FDL tracks Morningstar Dividend Leaders Index. They also come from different issuers: Invesco and First Trust. Their fees differ too: 0.15% for SPHQ and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.22 vs 1.85), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.