The Oppenheimer Russell 1000 Quality Factor ETF (OQAL) bets on higher quality companies in the hopes that they perform better than lower-quality companies. The fund screens for an equally-weighted composite of return on assets, change in asset turnover, accruals, and leverage, calculated based on information reported in the company’s most recent annual financial statement as of the last business day of the prior month.
The American Century STOXX U.S. Quality Value ETF (NYSEArca: VALQ) tries to reflect the performance of the iSTOXX American Century USA Quality Value Index, which is made up of 900 largest publicly traded U.S. equity securities screened and weighted by fundamental measures of quality, value and income.
Additionally, the J.P. Morgan U.S. Quality Factor ETF (NYSEArca: JQUA) is designed to provide exposure to high quality companies. JQUA tries to reflect the performance of the J.P. Morgan U.S. Quality Index, which is comprised of U.S. securities included in the Russell 1000 Index and selects constituents based on their quality as measured by profitability, solvency and earnings quality.
For more information on the smart beta strategy, visit our smart beta category.