• Since January 1995, the S&P 500® Quality Index has outperformed the S&P 500® Value Index as well as the S&P 500® Growth Index – and with lower overall risk.
  • Similarly, minimum volatility and high dividend factor-based approaches are also popular with investors, and can also be represented by S&P 500® indexes for comparison purposes.
  • Comparative analysis of Quality with Minimum Volatility and High Dividend since 1995 also shows that Quality has outperformed.
  • In addition, the quality factor has proven beneficial during rising markets and, importantly, has also offered protection during periods of market stress.
  • Emphasizing quality within an equity portfolio can help investors harness the benefits of healthy firms that exhibit high-profitability, fortress balance sheets, and strong fundamentals.