The iShares MSCI Intl Quality Factor ETF (IQLT) is rated a 'Buy' for its quality-focused international exposure and downside protection amid a weakening US dollar. IQLT's quality screening — focusing on ROE, earnings stability, and low leverage — has historically muted upside but limited drawdowns relative to broader international peers. The ETF outperformed the S&P 500 in 2025 (+23.64% YoY) but slightly lagged other international ETFs, with strong momentum and a competitive 0.30% expense ratio.
The U.S.-China trade tensions flare again. As tariffs rise, quality ETFs like QUS, SPHQ, QUAL & IQLT outperform SPY lately.
IQLT offers exposure to about 300 quality developed market stocks, focusing on profitability, stable earnings growth, and strong balance sheets, with a 0.30% expense ratio. The fund outperformed the MSCI World ex USA Index but lagged behind the S&P 500 due to limited technology sector exposure. IQLT's growth tilt contributes to its strong performance, but currency risk remains a concern for investors.
iShares MSCI Intl Quality Factor ETF (IQLT) holds about 300 international stocks, weighted based on capitalization and a quality score. IQLT is well diversified across countries, sectors and holdings, with a tilt to large caps and financials. IQLT looks expensive based on valuation ratios, but it has outperformed a benchmark and four popular factor-based ETFs in its stock universe.