Summary
QLTY Chart
QLTY: High Quality Does Not Guarantee Outperformance, Hold Rating Maintained
GMO U.S. Quality ETF employs an active, quality-centered strategy that brings together fundamental and quantitative methods. I maintain the Hold rating on QLTY owing to its recent underperformance vs. IVV, unappealing risk metrics, and the factor mix light in GARP stocks. Quality characteristics of the QLTY portfolio are impressive, yet they alone cannot drive outperformance.
QLTY: Excellent Factor Mix, Robust Returns, A Few Issues Not To Overlook
QLTY: Excellent Factor Mix, Robust Returns, A Few Issues Not To Overlook
QLTY's 37% Tech Allocation Was A Tailwind; Now It's A Liability
The GMO U.S. Quality ETF (NASDAQ:QLTY) has attracted $3 billion since launching in November 2023 by focusing on companies with exceptional returns on capital.
GMO U.S. Quality ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 274 | $8,565.24 | $11,468.27 | $2,903.03 | 33.89% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 666 | $24,102.54 | $27,828.81 | $3,726.27 | 15.46% |
 Jennifer Easley Gitterman Wealth Management LLC | 1.62M | $50.88M | $67.76M | $16.88M | 33.16% |
| WB William Bromley Innova Wealth Partners | 8,048 | $309,526.08 | $335,440.64 | $25,914.56 | 8.37% |
| SIM Studio Investment Management LLC Studio Investment Management LLC | 30,856 | $973,981.98 | $1.29M | $315,027.42 | 32.34% |
GMO U.S. Quality ETF (QLTY) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has GMO U.S. Quality ETF ever had a stock split?
GMO U.S. Quality ETF Profile
| ARCA Exchange | US Country |
Overview
The fund, managed by Grantham, Mayo, Van Otterloo & Co. LLC (GMO), is an actively managed exchange-traded fund (ETF) that primarily focuses on investing in high-quality equities of U.S. companies. The guiding principle behind the fund’s investment strategy is to select equities that GMO identifies as exhibiting a superior level of quality, a strategy that entails rigorous analysis and selection by the experienced advisers at GMO. This approach emphasizes the fund’s commitment to achieving its investment objectives through a meticulous investment process.
Products and Services
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Common and Preferred Stocks
These are the primary components of the fund's investment portfolio. Common stocks offer shareholders ownership in a company and a claim on a portion of its profits. Preferred stocks, meanwhile, typically provide no voting rights but have a higher claim on assets and earnings than common shares, such as dividends that are paid out before common stock dividends.
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Convertible Securities
Convertible securities are a type of investment that can be converted into another form, typically shares of the common stock of the issuing company. This conversion can happen at certain times during the life of the security, at the discretion of the holder or the issuer. This flexibility adds a layer of potential value for investors in the fund by offering the opportunity for capital appreciation through equity conversion.
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Depositary Receipts
As part of its international exposure, the fund may invest in depositary receipts, which are negotiable financial instruments issued by a bank to represent a foreign company's publicly traded securities. These can include both American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), allowing investors to hold shares in equity of foreign firms, providing a diversified global investment reach.
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Equity Real Estate Investment Trusts (REITs)
Equity REITs are companies that own, operate, or finance income-generating real estate across a range of property sectors. These can offer investors inflation protection, as well as the potential for capital growth and income through dividends, thereby adding a real estate component to the fund’s portfolio that is tied to tangible assets.
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Income Trusts
This investment allows the fund to hold income-producing assets indirectly. Income trusts typically distribute their income (after expenses) directly to shareholders, often providing a regular income stream. This can include both real estate and non-real estate assets, broadening the fund’s income-generating capabilities.
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Securities of Other Investment Companies
The fund may invest in securities of other investment companies that primarily invest in equity securities, including ETFs and mutual funds. This allows the fund to gain exposure to a diversified portfolio of equities beyond what it directly holds, potentially reducing risk and leveraging the investment expertise of other managers.
