The iShares Edge MSCI USA Quality Factor ETF (QUAL) is an exchange-traded fund that seeks to track the performance of the MSCI USA Quality Index. This index is designed to capture the performance of large- and mid-cap U.S. stocks exhibiting higher quality characteristics based on three key fundamental factors: high return on equity, stable year-over-year earnings growth, and low financial leverage.
QUAL provides exposure to a diversified portfolio of U.S. companies with strong fundamentals and a higher quality profile, which may offer downside protection during market downturns. The fund includes holdings from various sectors, including technology, healthcare, financials, and consumer services. As of February 18, 2023, the top holdings of the fund are Microsoft, Apple, Johnson & Johnson, JPMorgan Chase, and Facebook.
The fund has an expense ratio of 0.15%, which is relatively low compared to other actively managed funds in the same category. QUAL has a strong track record of performance and has outperformed the S&P 500 Index over the past five years, with an annualized return of 20.21% compared to the S&P 500's 16.05%. However, it is important to note that past performance is not indicative of future results, and investors should carefully consider their investment objectives and risk tolerance before investing in any fund.
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