- Exposure to large- and mid-cap U.S. stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth, and low financial leverage)
- Index-based access to a specific factor which has historically driven a significant part of companies’ risk and return
- Use to help manage exposure and risk within a stock allocation
Getting quality at a low cost can be a challenging endeavor when it comes to any product or service. In the world of ETFs, look no further than the iShares MSCI USA Quality Factor ETF (QUAL) with its microscopic 0.15% expense ratio.
QUAL seeks to track the investment results of the MSCI USA Sector Neutral Quality Index composed of U.S. large- and mid-capitalization stocks with quality characteristics as identified through certain fundamental metrics. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents.
The index is based on a traditional market capitalization-weighted parent index, the MSCI USA Index. Overall, the fund gives investors: