Related: A Smart Beta ETF That Targets Natural Monopolies
Financial services and healthcare stocks combine for over 29% of FQAL’s roster while consumer discretionary and industrial names combine for over 22%.
While the quality and value factors often appear together across various stocks and ETFs, that should not be interpreted to mean that all quality stocks and ETFs are discounted relative to the broader market. During periods of elevated market volatility, the quality factor has historically posted better returns relative to other investment factors.
FQAL charges just 0.29% per year, or $29 on a $10,000 investment, which is below the average for U.S. large-cap smart beta funds.
For more on Smart Beta ETFs, visit the Smart Beta Channel home page.
Tom Lydon’s clients own shares of Apple.