QLTY - ETF AI Analysis
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GMO U.S. Quality ETF (QLTY)
Rating:75Outperform
Price Target:―
Positive Factors
Healthy Overall Performance
The ETF has shown steady gains so far this year, indicating that its strategy has been working in the current market.
Strong Quality Leaders in Top Holdings
Several major positions like Apple, Alphabet, Lam Research, Johnson & Johnson, Broadcom, Texas Instruments, and Amazon have delivered strong year-to-date performance, helping support the fund’s returns.
Focused Sector Mix in Resilient Areas
Heavy exposure to technology and health care, along with meaningful stakes in communication services and consumer sectors, gives the fund a mix of growth and defensive companies.
Negative Factors
High Concentration in a Few Large Stocks
A small number of big technology and communication names make up a large share of the portfolio, increasing the impact if any of them run into trouble.
Notable Weakness in Some Key Holdings
Important positions such as Microsoft, Meta Platforms, and Thermo Fisher have shown weak year-to-date performance, which can drag on the fund’s results if the trend continues.
Higher Expense Ratio Than Many Broad ETFs
The fund’s fee is on the higher side for an ETF, which slightly reduces the net return investors keep over time compared with lower-cost options.
QLTY vs. SPDR S&P 500 ETF (SPY)
AUM4.79B
RegionNorth America
Expense Ratio0.50%
Beta0.92
IssuerGMO
Inception DateNov 13, 2023
Dividend Yield0.73%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume369,104
30 Day Avg. Volume474,049
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
49.95Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering42
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
QLTY Summary
QLTY, the GMO U.S. Quality ETF, invests in a wide mix of U.S. companies that are considered financially strong and well managed, rather than tracking a specific index. It focuses on the total U.S. stock market but leans heavily toward sectors like technology and health care. Well-known holdings include Microsoft, Apple, Alphabet (Google), and Amazon. Someone might invest in QLTY to get diversified exposure to leading U.S. businesses with the potential for long-term growth. A key risk is that it can still go up and down with the overall stock market, especially tech stocks.
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 leans heavily into U.S. tech and chip powerhouses, with Lam Research, KLA, and Texas Instruments doing the heavy lifting as their semiconductor stories keep gaining traction. Alphabet and Amazon are more of a mixed bag, with long-term AI and cloud tailwinds but choppier recent trading. Big Tech staples like Microsoft, Apple, and Meta are losing a bit of steam lately, acting more as a brake than an engine. Johnson & Johnson adds a steadier health care anchor, but overall this is a U.S.-centric, tech-driven ride.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Microsoft | 6.36% | $305.55M | $2.90T | -25.31% | 79 Outperform | |
| Alphabet Class A | 5.17% | $248.37M | $4.16T | 65.32% | 85 Outperform | |
| Apple | 5.14% | $246.68M | $4.79T | 50.48% | 79 Outperform | |
| Lam Research | 4.75% | $228.34M | $399.29B | 227.04% | 77 Outperform | |
| Johnson & Johnson | 4.42% | $212.39M | $615.36B | 52.91% | 78 Outperform | |
| Meta Platforms | 4.41% | $211.61M | $1.59T | -15.21% | 76 Outperform | |
| Broadcom | 4.06% | $194.80M | $1.89T | 35.94% | 76 Outperform | |
| Texas Instruments | 4.00% | $191.87M | $267.74B | 53.48% | 78 Outperform | |
| Amazon | 3.58% | $172.14M | $2.63T | 0.62% | 71 Outperform | |
| KLA | 3.43% | $164.52M | $280.44B | 141.91% | 77 Outperform |
QLTY Technical Analysis
Neutral
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Price Trends
41.10
Negative
39.58
Positive
38.81
Positive
Market Momentum
0.06
Positive
41.84
Neutral
11.90
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QLTY, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 41.46, equal to the 50-day MA of 41.10, and equal to the 200-day MA of 38.81, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QLTY.
QLTY Peer Comparison
Comparison Results
Performance Comparison
QLTY
GMO U.S. Quality ETF
40.84
6.43
18.69%
AKRE
Akre Focus ETF
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TSPA
T. Rowe Price U.S. Equity Research ETF
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DCOR
Dimensional US Core Equity 1 ETF
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APUE
ActivePassive U.S. Equity ETF
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FTHI
First Trust BuyWrite Income ETF
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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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