SQLV Profile
Royce Quant Small-Cap Quality Value ETF is an exchange-traded fund that focuses on investing in the equity securities of small-capitalization companies listed in the United States. The fund employs a proprietary methodology developed by its subadviser to identify and select stocks that exhibit characteristics of high quality and value. This strategy aims to capitalize on the growth potential of smaller companies while emphasizing fundamental attributes such as financial strength and attractive valuation metrics.
Under normal market conditions, the ETF allocates at least 80% of its net assets, including any borrowings for investment purposes, to equity securities of small-cap companies or similar instruments. The small-cap universe encompasses companies with relatively smaller market capitalizations compared to larger, more established firms. This focus allows the fund to target companies that may offer higher growth prospects and greater returns compared to their larger counterparts.
The fund's proprietary investment approach involves a quantitative analysis that integrates various financial metrics and valuation criteria. This systematic process seeks to identify companies with strong earnings potential, solid balance sheets, and favorable valuation relative to their peers. By combining quantitative factors with a rigorous selection process, the ETF aims to achieve superior long-term performance while managing risk associated with investing in smaller companies.
Managed by Royce & Associates, the Royce Quant Small-Cap Quality Value ETF benefits from the firm's extensive expertise in small-cap investing. Royce & Associates is known for its deep research capabilities and commitment to identifying high-quality investment opportunities within the small-cap sector. The ETF offers investors a strategic way to gain exposure to small-cap stocks with a focus on quality and value, potentially providing significant capital appreciation over time while maintaining a disciplined investment approach.
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