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QLTY - ETF AI Analysis

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QLTY

GMO U.S. Quality ETF (QLTY)

Rating:75Outperform
Price Target:
QLTY, the GMO U.S. Quality ETF, earns a solid overall rating because it is built around financially strong, industry-leading companies like Microsoft and Alphabet, whose growth in cloud and AI, solid earnings, and strategic investments provide a strong foundation for the fund. Holdings such as Amazon and Thermo Fisher add diversification but come with issues like premium valuations, mixed technical signals, and some cash flow challenges, which slightly hold back the fund’s rating. A key risk factor is the fund’s heavy tilt toward large U.S. technology and AI-focused companies, which can increase sensitivity to shifts in tech valuations and regulatory developments.
Positive Factors
Strong Semiconductor Exposure
Several major chip-related holdings have shown strong recent performance, helping support the fund’s overall returns.
Quality Large-Cap Tech and Growth Leaders
Top positions in well-known technology and internet companies provide exposure to businesses with strong competitive positions and growth potential.
Sector Diversification Within U.S. Stocks
Holdings spread across technology, health care, communication services, consumer sectors, financials, and industrials help reduce reliance on any single industry.
Negative Factors
Heavy U.S.-Only Focus
With almost all assets in U.S. companies, the fund offers little geographic diversification and is highly tied to the U.S. market.
Concentration in Technology
A large portion of the portfolio is in the technology sector, which can increase volatility if tech stocks fall out of favor.
Mixed Performance Among Top Holdings
Some of the largest positions, including major technology names, have shown weaker year-to-date performance, which can drag on the fund’s results.

QLTY vs. SPDR S&P 500 ETF (SPY)

QLTY Summary

The GMO U.S. Quality ETF (QLTY) invests in a wide range of U.S. companies that the manager believes are financially strong and well run, rather than tracking a specific index. It focuses on “quality” businesses across the total U.S. stock market, with a big tilt toward technology and health care. Well-known holdings include Microsoft, Apple, Amazon, and Johnson & Johnson. Someone might invest in QLTY to seek long-term growth and diversification through leading U.S. companies. A key risk is that it is heavily invested in large tech-related stocks, so its price can rise and fall sharply with that part of the market.
How much will it cost me?The GMO U.S. Quality ETF (QLTY) has an expense ratio of 0.50%, meaning you’ll pay $5 per year for every $1,000 invested. This expense ratio is higher than average for ETFs because it is actively managed, focusing on selecting high-quality U.S. companies rather than tracking a broad index. Active management typically involves more research and decision-making, which increases costs.
What would affect this ETF?The GMO U.S. Quality ETF (QLTY) could benefit from continued growth in the technology and healthcare sectors, which make up a significant portion of its holdings. However, rising interest rates or economic slowdowns could negatively impact the performance of high-growth companies like Microsoft, Apple, and Alphabet that dominate the fund. Regulatory changes in the U.S., particularly in tech and healthcare, may also influence the ETF's future returns.

QLTY Top 10 Holdings

QLTY is leaning hard into U.S. tech and chip powerhouses, with names like Broadcom, Lam Research, KLA, and Texas Instruments doing the heavy lifting as semiconductor demand tied to AI keeps them rising. Big Tech platforms such as Alphabet, Meta, and Amazon are also adding fuel, though their gains have been a bit more mixed. Microsoft looks steadier but not sprinting, while Apple has been losing a bit of steam. Johnson & Johnson offers a calmer health care counterweight, but this is still very much a U.S.-centric, tech-driven story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Microsoft6.68%$275.39M$3.09T7.34%
79
Outperform
Alphabet Class A5.71%$235.54M$4.09T112.76%
85
Outperform
Broadcom5.26%$216.74M$1.99T123.19%
76
Outperform
Lam Research4.96%$204.35M$322.88B264.68%
77
Outperform
Meta Platforms4.82%$198.76M$1.67T23.63%
76
Outperform
Apple4.69%$193.32M$4.01T31.22%
79
Outperform
Johnson & Johnson4.43%$182.83M$555.22B48.87%
78
Outperform
KLA3.92%$161.46M$237.96B163.33%
77
Outperform
Amazon3.85%$158.92M$2.74T36.74%
71
Outperform
Texas Instruments3.59%$148.03M$256.96B74.08%
78
Outperform

QLTY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
37.81
Positive
100DMA
38.34
Positive
200DMA
37.02
Positive
Market Momentum
MACD
0.68
Negative
RSI
68.19
Neutral
STOCH
90.19
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QLTY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 38.07, equal to the 50-day MA of 37.81, and equal to the 200-day MA of 37.02, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 90.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QLTY.

QLTY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$4.09B0.50%
75
Outperform
$6.67B0.98%
67
Neutral
$2.90B0.14%
73
Outperform
$2.52B0.34%
73
Outperform
$2.36B0.31%
70
Outperform
$2.16B0.76%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QLTY
GMO U.S. Quality ETF
39.82
9.48
31.25%
AKRE
Akre Focus ETF
DCOR
Dimensional US Core Equity 1 ETF
TSPA
T. Rowe Price U.S. Equity Research ETF
APUE
ActivePassive U.S. Equity ETF
FTHI
First Trust BuyWrite Income ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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