Inflation Edges Up in November: Bet on Quality ETFs
Inflation in the United States increases the most in seven months in November. Investors should focus on high-quality investing.
QUAL: A Quality Portfolio Too Similar To The S&P 500
iShares MSCI USA Quality Factor ETF has a low expense ratio but similar sector allocation to the S&P 500, with slightly inferior returns. QUAL's portfolio construction focuses on high profitability, low leverage, and stable earnings growth, resulting in a large-cap stock tilt. Despite its quality factors, QUAL has slightly higher volatility and downside risk compared to the S&P 500, with a 5-year beta of 1.05.
QUAL: Focusing On High Quality American Companies
The QUAL ETF focuses on high "quality" American companies with strong balance sheets, high ROE, low debt-to-equity ratios, and a track record of consistent earnings. Despite its quality metric screens, the QUAL ETF's sector exposure and top holdings pretty closely mirror the S&P500, offering limited differentiation. Meantime, QUAL's elevated price-to-book ratio and lower dividend yield as compared to the S&P500 raise concerns about the fund's perceived defensive qualities because it is focused on "quality".
Why Yields Spiked Despite Tame Inflation? Buy Quality ETFs
Despite soft inflation print, bond yields spiked on Nov. 13 as traders doubted how fast and far the Fed can act dovish given that Trump's policies may boost inflation.
Is iShares MSCI USA Quality Factor ETF (QUAL) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the iShares MSCI USA Quality Factor ETF (QUAL) is a smart beta exchange traded fund launched on 07/16/2013.
QUAL: Performing As Predicted, Staying Bullish
The iShares MSCI Quality Factor ETF has delivered compelling returns since our latest coverage. Regression analysis and economic indicators suggest the QUAL ETF will deliver additional gains in late 2024 and early 2025. I believe the ETF's constituency has impressive growth and residual value metrics, likely phasing valuation risk out of the equation.
Is iShares MSCI USA Quality Factor ETF (QUAL) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the iShares MSCI USA Quality Factor ETF (QUAL) is a smart beta exchange traded fund launched on 07/16/2013.
QUAL: Underweighting Quality
The iShares MSCI USA Quality Factor ETF (QUAL) offers exposure to stocks based on quality ratings. QUAL slightly outperforms the S&P500, but has underwhelming results compared to expectations and experiences larger drawdowns. SPHQ is a preferred alternative.
Is iShares MSCI USA Quality Factor ETF (QUAL) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares MSCI USA Quality Factor ETF (QUAL) debuted on 07/16/2013, and offers broad exposure to the Style Box - All Cap Blend category of the market.
