At the sector level, QUAL, at least first glance, looks somewhat like an S&P 500 fund as technology, healthcare and financial services are the three largest sector weights. Those sectors combine for approximately 54% of QUAL’s weight.
“We find many such companies in the U.S., where earnings growth fueled by the tax overhaul offers an edge,” said BlackRock. “Companies able—and willing—to increase dividends appear better poised to withstand volatility. We see a tougher go for highly bid “stable” dividend stocks as higher U.S. rates make “risk-free” shorter-term bonds attractive alternatives.”
Speaking of volatility, QUAL’s three-year standard deviation of 9.58% is 50 basis points below the comparable metric on the S&P 500. Investors have added $1.16 billion in new assets to QUAL this year.
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