# SPHQ, QUAL, and MOAT Define Quality Differently

> Three ETFs use different rules to pick quality stocks, but only four companies appear in all portfolios.
- Title: SPHQ, QUAL, and MOAT Define Quality Differently | Shortify
- Summary: Three ETFs use different rules to pick quality stocks, but only four companies appear in all portfolios. SPHQ, QUAL, and MOAT each define quality…
- Keywords: spqh, qual, moat, etf, quality, investing, s&p 500, financial metrics, accounting tests, competitive advantage, SPHQ, Define
- Source: 24/7 Wall St. — https://247wallst.com/investing/etf/2026/10/21/sphq-qual-and-moat-define-quality-differently-those-rules-decide-what-you-own
- Author: Ryne Mauck
- Published: 2026-10-22T01:03:04+00:00
- Read time: 1 min
- Topics: spqh, qual, moat, etf, quality, investing, s&p 500, financial metrics, accounting tests, competitive advantage
## Three ETFs Define Quality Differently
Three ETFs all claim to own quality businesses, yet only four companies appear in all three portfolios.
## SPHQ Uses Accounting Tests
SPHQ grades every s&p 500 stock on return on equity, accruals ratio, and financial leverage ratio.
## QUAL Adds Earnings Stability
QUAL tracks u.s. stocks with high return on equity, stable earnings, and low debt, using msci as its index provider.
## MOAT Relies on Analyst Judgment
MOAT hands the decision to morningstar analysts about sustainable competitive advantages and fair value pricing.
## Only Four Companies Pass All Rules
Applied Materials, Chipotle Mexican Grill, Fortinet, and Zoetis are the only companies in all three portfolios.
## SPHQ and QUAL Share 49 Companies
SPHQ held 100 stocks and QUAL held 125 as of their july 31, 2026 filings, sharing 49 companies.
## MOAT Shares Fewer Companies
MOAT shares just 8 companies with spqh and 14 with qual, making it the outlier.
## Price Returns Show MOAT Trails
SPHQ leads over five and ten years, QUAL leads over shorter windows, and MOAT trails all periods.
## How to Pick the Right ETF
SPHQ and QUAL fit investors who want mechanical quality metrics at 0.15% fee, while MOAT fits those who want analyst judgment at higher cost.
## Key takeaway

SPHQ, QUAL, and MOAT each define quality differently, with only four companies in all three ETF portfolios.