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QLTY - ETF AI Analysis
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GMO U.S. Quality ETF (QLTY)
Rating:75Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several top holdings, such as Lam Research, Broadcom, and Microsoft, have delivered strong year-to-date performance, supporting the ETF's overall returns.
Sector Diversification
The ETF is spread across multiple sectors, including Technology, Health Care, and Consumer Defensive, reducing reliance on any single industry.
Healthy Year-to-Date Performance
The ETF has shown solid year-to-date growth, indicating strong overall performance in the current market environment.
Negative Factors
High Technology Concentration
Over 40% of the fund is allocated to the Technology sector, making it vulnerable to downturns in this industry.
Limited Geographic Exposure
With over 99% of its holdings in U.S. companies, the ETF lacks diversification across global markets.
Underperforming Holding
Salesforce, one of the top holdings, has shown negative year-to-date performance, which could drag on the fund's overall returns.
QLTY vs. SPDR S&P 500 ETF (SPY)
AUM3.06B
RegionNorth America
Expense Ratio0.50%
Beta0.90
IssuerGMO
Inception DateNov 13, 2023
Dividend Yield0.74%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume217,023
30 Day Avg. Volume271,067
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
44.53Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering36
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
QLTY Summary
The GMO U.S. Quality ETF (QLTY) is an investment fund that focuses on high-quality U.S. companies with strong financial health, consistent earnings, and solid management practices. It includes firms across various industries, with a significant focus on technology and healthcare. Some well-known companies in this ETF are Microsoft and Apple. Investors might consider QLTY for its potential to provide long-term growth and resilience during market ups and downs, thanks to its emphasis on quality businesses. However, since technology makes up a large portion of the fund, its performance could be heavily influenced by changes in the tech sector.
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
The GMO U.S. Quality ETF leans heavily into technology, with names like Microsoft and Alphabet driving steady performance thanks to their leadership in AI and cloud innovation. Lam Research has been a standout, rising sharply on strong demand for advanced semiconductor technologies, while Meta Platforms has shown mixed results, with growth in AI offset by expense concerns. Apple’s steady gains reflect its resilience, though it’s losing some momentum. The fund’s concentration in tech and healthcare underscores its focus on high-growth sectors, making it a bet on innovation and stability within the U.S. market.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Microsoft | 6.67% | $203.76M | $3.62T | 15.65% | 79 Outperform | |
| Lam Research | 5.62% | $171.72M | $220.90B | 143.49% | 77 Outperform | |
| Alphabet Class A | 5.38% | $164.46M | $3.79T | 65.64% | 85 Outperform | |
| Apple | 4.69% | $143.33M | $4.05T | 9.32% | 79 Outperform | |
| Meta Platforms | 4.68% | $143.09M | $1.66T | 12.50% | 76 Outperform | |
| Broadcom | 4.59% | $140.21M | $1.66T | 50.70% | 76 Outperform | |
| Johnson & Johnson | 4.37% | $133.51M | $500.07B | 43.52% | 78 Outperform | |
| KLA | 4.00% | $122.29M | $165.61B | 100.02% | 77 Outperform | |
| Salesforce | 3.97% | $121.44M | $249.46B | -20.46% | 80 Outperform | |
| Accenture | 3.75% | $114.46M | $166.96B | -22.87% | 79 Outperform |
QLTY Technical Analysis
Positive
―
Price Trends
37.75
Positive
36.65
Positive
34.43
Positive
Market Momentum
0.33
Negative
60.38
Neutral
81.00
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 38.45, equal to the 50-day MA of 37.75, and equal to the 200-day MA of 34.43, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 81.00 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
Performance Comparison
QLTY
GMO U.S. Quality ETF
38.76
7.04
22.19%
CGUS
Capital Group Core Equity ETF
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―
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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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―
―
TSPA
T. Rowe Price U.S. Equity Research ETF
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―
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DFSU
Dimensional US Sustainability Core 1 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.
Disclaimer
This 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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