From 24/7 Wall St. · Ryne Mauck · · 1m 30s
SPHQ, QUAL, and MOAT Define Quality Differently
Three ETFs use different rules to pick quality stocks, but only four companies appear in all portfolios.
In brief
Three ETFs use different rules to pick quality stocks, but only four companies appear in all portfolios. SPHQ, QUAL, and MOAT each define quality differently, with only four companies in all three ETF portfolios. Originally reported by 24/7 Wall St..
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.
The headline
SPHQ, QUAL, and MOAT each define quality differently, with only four companies in all three ETF portfolios.
