Top Invesco ETFs to Outperform the S&P 500 in 2026

In the pursuit of capital appreciation, investors increasingly seek strategies that blend growth potential with quality fundamentals. As markets evolve, the interplay between sector concentration, valuation dynamics, and portfolio rebalancing becomes critical. This analysis identifies Invesco ETFs that leverage growth and quality factors to outperform the S&P 500 in 2026, supported by historical performance data and structural advantages.

The Case for Growth and Quality

Growth and quality stocks have historically demonstrated resilience during market cycles, particularly when earnings momentum and strong balance sheets align. According to a report by Invesco, the S&P 500 Quality ETF (SPHQ) selects the 100 highest-quality stocks from the S&P 500 based on metrics like profitability, leverage, and earnings stability. Over a 3-year period ending October 2025, , . This underscores the value of quality screens in mitigating downside risk while capturing growth.

Invesco QQQ Trust: Growth-Driven Outperformance

For investors prioritizing growth, the (QQQ), which tracks the , has been a standout performer. Data from Invesco indicates that QQQ has outperformed the S&P 500 in seven of the last 10 years as of September 2025. Its heavy exposure to technology giants like Apple, Microsoft, and NVIDIA has fueled over the past decade, . However, this concentration also exposes the fund to sector-specific volatility, particularly in .

Rebalancing is a cornerstone of maintaining a quality-focused portfolio. The Invesco S&P 500 Quality ETF (SPHQ) and the Invesco S&P International Developed Quality ETF (SPID) are on the third Friday of June and December. This ensures the portfolios remain aligned with quality criteria, such as high and low debt-to-equity ratios. SPID, which targets , complements domestic exposure by diversifying geographic risk while adhering to similar .

Balancing Growth with Stability

While growth ETFs like QQQ offer upside potential, they must be balanced with lower-volatility alternatives. The Invesco S&P 500® Low Volatility ETF (SPLV) and the S&P 500 Equal Weight ETF (RSP) provide such stability. RSP has delivered an average annual return , offering a more diversified representation of the S&P 500. SPLV, on the other hand, focuses on low-volatility stocks, reducing during market corrections.

Strategic Portfolio Construction for 2026

A combining these ETFs can optimize growth and quality dynamics. For instance, a 60/20/20 allocation to QQQ, SPHQ, and SPLV could capture growth while . Historical data suggests that such a mix would have outperformed the S&P 500 in multi-year horizons, particularly during periods of divergent growth-value performance. Additionally, incorporating SPID introduces , countering U.S.-centric valuation extremes.

Conclusion

As 2026 approaches, investors must navigate a landscape where growth and quality factors are both critical and interdependent. Invesco's suite of ETFs-ranging from the high-growth QQQ to the quality-focused SPHQ and SPID-offers tools to construct a resilient, outperforming portfolio. By leveraging and strategic diversification, investors can position themselves to capitalize on market opportunities while managing risk.