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Quality ETF (QUAL) Hits New 52-Week High

For investors seeking momentum, MSCI USA Quality Factor ETF (QUAL) is probably on radar now. The fund just hit a 52-week high and is up about 62.7% from its 52-week low price of $41.80/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

QUAL in Focus    

This fund provides exposure to the stocks that exhibit positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage). It holds 123 securities in its basket with key holdings in information technology, financials, healthcare and consumer discretionary. The product charges 15 bps in annual fees from investors (see: all the Total U.S. Marker ETFs here).

Why the Move?

The quality corner of the broad investing world has been an area to watch lately as the rocky market has rekindled investors’ faith in products that provide stability and safety. Quality stocks consistently deliver superior risk-adjusted returns than the broader market over the long term while reduces risk in a portfolio. More importantly, these stocks generally outperform in a crumbling market.

More Gains Ahead?

It seems that QUAL might continue with its strength given a high-weighted alpha of 5.30% and a lower 20-day volatility of 9.45%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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ISHARS-MS US QF (QUAL): ETF Research Reports
 
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