QUAL - ETF AI Analysis

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iShares MSCI USA Quality Factor ETF (QUAL)

Rating:75Outperform

Price Target:―

QUAL, the iShares MSCI USA Quality Factor ETF, earns a solid rating because it is built around financially strong, industry-leading companies like Microsoft, Apple, and Nvidia, which show robust profitability and long-term growth potential in areas such as cloud computing, AI, and advanced chips. Additional support comes from high-quality names in semiconductors and consumer retail like Lam Research, KLA, Applied Materials, and TJX, which benefit from positive earnings trends and strategic expansion. The main risk is that many of these large tech and growth-focused holdings trade at high valuations and face issues like bearish or mixed technical signals, regulatory pressures, and trade restrictions, which could increase volatility.

Positive Factors

Large Asset Base

The fund manages a very large pool of assets, which can support liquidity and trading ease for investors.

Strong Semiconductor Exposure

Several top holdings in chip-related companies have shown strong recent performance, helping drive the ETF’s returns.

Low Expense Ratio

The ETF charges relatively low annual fees, allowing investors to keep more of their returns over time.

Negative Factors

Heavy Technology Concentration

A large portion of the portfolio is in the technology sector, which can increase the fund’s sensitivity to tech downturns.

Mixed Performance Among Top Holdings

Some of the biggest positions, including major technology and healthcare names, have recently shown weak or negative performance, which can drag on overall results.

Limited Geographic Diversification

The ETF is almost entirely invested in U.S. companies, offering little exposure to opportunities or diversification in other regions.

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

AUM49.58B

RegionNorth America

Expense Ratio0.15%

Beta0.94

IssueriShares

Inception DateJul 18, 2013

Dividend Yield0.91%

Asset ClassEquity

Index TrackedMSCI USA Sector Neutral Quality

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume954,535

30 Day Avg. Volume2,063,663

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

244.61

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering121

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QUAL Summary

QUAL is the iShares MSCI USA Quality Factor ETF, which follows the MSCI USA Sector Neutral Quality Index. It focuses on U.S. companies with strong finances and steady earnings, aiming to hold businesses that are considered higher “quality” than the overall market. Big names like Apple and Nvidia are among its top holdings, and the fund spreads your money across many sectors, which can help with diversification and potential long-term growth. However, it has a large tilt toward technology stocks, so its price can swing up and down more if tech companies rise or fall sharply.

How much will it cost me?The iShares MSCI USA Quality Factor ETF (QUAL) has an expense ratio of 0.15%, which means you’ll pay $1.50 per year for every $1,000 invested. This is lower than average because QUAL is passively managed, tracking an index rather than relying on active stock picking.

What would affect this ETF?QUAL's strong focus on high-quality U.S. companies, particularly in technology and financial sectors, positions it well to benefit from innovation and stable earnings growth in these industries. However, its heavy reliance on technology could make it vulnerable to regulatory changes or economic slowdowns affecting tech companies. Broader economic conditions, such as interest rate fluctuations, could also impact financial sector performance and overall market sentiment.

QUAL Top 10 Holdings

QUAL is leaning heavily on U.S. mega-cap tech, with Nvidia, Apple, and Microsoft setting the tone. Nvidia is still powering ahead, while Apple looks steady-to-rising after a softer stretch. Microsoft’s longer-term performance has been more mixed, losing a bit of steam recently despite strong cloud and AI momentum. The real engine lately has been the chip-equipment trio—Lam Research, Applied Materials, and KLA—which are surging and giving the fund a clear semiconductor tilt. On the flip side, Visa and Eli Lilly have been lagging, quietly tugging on returns in an otherwise tech-driven, U.S.-only portfolio.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	6.60%	$3.30B	$4.86T	97.16%	76 Outperform
AAPL	Apple	6.31%	$3.16B	$3.91T	33.51%	79 Outperform
MSFT	Microsoft	5.35%	$2.68B	$3.15T	15.63%	79 Outperform
META	Meta Platforms	3.85%	$1.93B	$1.69T	29.69%	76 Outperform
LRCX	Lam Research	3.32%	$1.66B	$322.64B	297.95%	77 Outperform
TJX	TJX Companies	3.22%	$1.61B	$176.26B	26.27%	79 Outperform
V	Visa	2.91%	$1.46B	$590.75B	-6.90%	70 Outperform
KLAC	KLA	2.88%	$1.44B	$234.02B	175.76%	77 Outperform
LLY	Eli Lilly & Co	2.88%	$1.44B	$853.19B	11.10%	72 Outperform
AMAT	Applied Materials	2.50%	$1.25B	$312.94B	181.01%	77 Outperform

QUAL Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

199.18

Positive

100DMA

199.77

Positive

200DMA

194.62

Positive

Market Momentum

MACD

2.72

Negative

RSI

67.58

Neutral

STOCH

87.17

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QUAL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 198.06, equal to the 50-day MA of 199.18, and equal to the 200-day MA of 194.62, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 87.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QUAL.

QUAL Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
QUAL	―	―	$49.58B	0.15%	75 Outperform
VTI	―	―	$614.71B	0.03%	72 Outperform
VIG	―	―	$105.12B	0.04%	72 Outperform
ITOT	―	―	$87.63B	0.03%	73 Outperform
DFAC	―	―	$44.07B	0.17%	73 Outperform
SCHB	―	―	$40.45B	0.03%	73 Outperform

Performance Comparison

QUAL

iShares MSCI USA Quality Factor ETF

207.17

41.98

25.41%

VTI

Vanguard Total Stock Market ETF

―

VIG

Vanguard Dividend Appreciation ETF

―

ITOT

iShares Core S&P Total U.S. Stock Market ETF

―

DFAC

Dimensional U.S. Core Equity 2 ETF

―

SCHB

Schwab U.S. Broad Market 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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