However, QINC is not diverse at the sector level as financial services and utilities combine for 65% of the ETF’s weight with no other sector receiving a double-digit allocation. The 24% weight to utilities is triple that of the next largest sector allocation, that being health care.
A more than 41% weight to financials might seem excessive, but that could work in QINC’s favor going forward. The new ETF features a solid allocation to regional and community banks that could soon provide income investors with enhanced dividend growth, should the Federal Reserve allow more banks to boost payouts and buybacks later this week. Additionally, many of the banks held by QINC would stand to benefit from increased net interest margins as interest rates rise. [Small-Cap Banks Lift These ETFs]
However, QINC can be seen as a versatile play on interest rates. The ETF’s ample exposure to real estate investment trusts and utilities ensures the fund is an avenue for exploiting more sanguine rate environments.
QINC Top-10 Holdings
