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QLTY - ETF AI Analysis
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GMO U.S. Quality ETF (QLTY)
Rating:76Outperform
Price Target:
$42.00
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)
AUM2.77B
RegionNorth America
Expense Ratio0.50%
Beta0.91
IssuerGMO
Inception DateNov 13, 2023
Dividend Yield0.79%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume257,995
30 Day Avg. Volume215,673
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
43.61Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering37
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 Broadcom driving its performance thanks to strong growth in AI and cloud services. Lam Research has been a standout, riding a wave of optimism in the semiconductor space, while Alphabet’s steady gains reflect its dominance in digital advertising and AI innovation. On the flip side, Meta Platforms has seen mixed results, with regulatory hurdles weighing on its momentum. The fund’s focus on U.S. companies ensures a domestic tilt, but its tech-heavy positioning means it’s riding the highs and lows of the sector’s recent volatility.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Microsoft | 7.29% | $202.16M | $3.79T | 22.06% | 82 Outperform | |
| Alphabet Class A | 5.58% | $154.80M | $3.34T | 62.59% | 80 Outperform | |
| Lam Research | 5.24% | $145.47M | $186.22B | 108.96% | 77 Outperform | |
| Apple | 4.87% | $135.03M | $4.03T | 17.30% | 80 Outperform | |
| Broadcom | 4.69% | $130.17M | $1.62T | 106.83% | 76 Outperform | |
| Meta Platforms | 4.52% | $125.30M | $1.54T | 8.59% | 71 Outperform | |
| Johnson & Johnson | 4.30% | $119.34M | $472.05B | 28.95% | 78 Outperform | |
| KLA | 4.05% | $112.34M | $149.04B | 82.78% | 79 Outperform | |
| Thermo Fisher | 3.84% | $106.49M | $217.43B | 13.14% | 73 Outperform | |
| Salesforce | 3.79% | $105.26M | $231.96B | -24.39% | 79 Outperform |
QLTY Technical Analysis
Neutral
―
Price Trends
36.74
Positive
35.59
Positive
33.73
Positive
Market Momentum
0.12
Positive
45.63
Neutral
41.70
Neutral
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 37.34, equal to the 50-day MA of 36.74, and equal to the 200-day MA of 33.73, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.70 is Neutral, 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
36.80
4.89
15.32%
AVUS
Avantis U.S. Equity ETF
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DFAU
Dimensional US Core Equity Market ETF
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CGUS
Capital Group Core Equity ETF
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RDVI
FT Cboe Vest Rising Dividend Achievers Target Income ETF
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DCOR
Dimensional US Core Equity 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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