US High-Quality Strategy: Outperforming Benchmark, Though Factor Rotations Adding Pressure

The US High Quality (USHQ) portfolio outperformed its benchmark through August, returning 5.39%, whilst its SPY benchmark returned 3.75%. On a trailing three-month basis, the USHQ portfolio’s performance was weaker than the benchmark, but the gap narrowed, with USHQ underperforming by approximately 450bps.