Average Daily Volume
1.76M
Fund Overview
The iShares MSCI USA Quality Factor ETF (QUAL) seeks to track the investment results of the MSCI USA Sector Neutral Quality Index. This index is composed of U.S. large- and mid-capitalization stocks with high quality scores based on three fundamental variables: return on equity (ROE), earnings variability, and financial leverage. QUAL provides exposure to companies with strong balance sheets, stable earnings, and efficient management, making it an attractive option for investors seeking high-quality U.S. equities. The fund is designed to offer a sector-neutral approach, ensuring diversification across industries while maintaining a focus on quality.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.96 %
- Currency Hedged
-
No
- Portfolio Turnover
-
31 %
- Dividend Date
-
Why Invest in the QUAL ETF?
Potential Benefits
- Focuses on high-quality U.S. companies with strong profitability and stable earnings, which may outperform during market downturns.
- Sector-neutral approach reduces concentration risk while maintaining exposure to quality factors.
- Low expense ratio compared to actively managed quality-focused funds.
- Provides diversification across large- and mid-cap U.S. equities with a disciplined investment strategy.
- Historically, quality factors have shown resilience in volatile markets.
Potential Risks
- Concentrated exposure to quality factors may underperform during periods when low-quality stocks rally.
- Sector-neutral approach may limit upside potential if certain sectors outperform significantly.
- Market-cap weighting may lead to overexposure to larger companies within the quality universe.
- Performance is tied to U.S. equities, making it susceptible to domestic economic and political risks.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+1.9%
|
+1.2%
|
-6.2%
|
+8.0%
|
+4.0%
|
+2.0%
|
-0.1%
|
+1.5%
|
0.0%
|
+1.9%
|
-
|
-
|
| 2025 |
+3.0%
|
-1.0%
|
-5.7%
|
-0.9%
|
+4.5%
|
+3.5%
|
+0.7%
|
+2.6%
|
+3.2%
|
+0.9%
|
+0.9%
|
+0.6%
|
| 2024 |
+2.3%
|
+6.5%
|
+2.8%
|
-4.5%
|
+5.6%
|
+3.2%
|
+0.6%
|
+3.5%
|
+1.2%
|
-1.6%
|
+5.0%
|
-3.6%
|
| 2023 |
+7.2%
|
-2.8%
|
+4.8%
|
+1.7%
|
+0.7%
|
+6.4%
|
+3.8%
|
-0.4%
|
-5.1%
|
-1.5%
|
+8.6%
|
+4.7%
|
| 2022 |
-7.0%
|
-4.1%
|
+4.0%
|
-8.3%
|
-0.2%
|
-9.0%
|
+9.2%
|
-5.1%
|
-9.8%
|
+8.3%
|
+7.7%
|
-5.6%
|
| 2021 |
-2.8%
|
+3.2%
|
+5.0%
|
+4.8%
|
+1.0%
|
+3.4%
|
+3.4%
|
+2.8%
|
-6.5%
|
+7.7%
|
-0.6%
|
+3.5%
|
| 2020 |
-0.7%
|
-8.3%
|
-11.4%
|
+12.3%
|
+5.6%
|
+0.2%
|
+5.0%
|
+6.9%
|
-3.1%
|
-2.6%
|
+11.3%
|
+3.7%
|
| 2019 |
+8.2%
|
+4.4%
|
+2.5%
|
+3.8%
|
-6.6%
|
+7.1%
|
+1.4%
|
-1.8%
|
+1.9%
|
+2.2%
|
+4.5%
|
+2.8%
|
| 2018 |
+4.6%
|
-2.9%
|
-1.3%
|
-1.3%
|
+2.7%
|
0.0%
|
+3.7%
|
+3.7%
|
+1.1%
|
-7.6%
|
+0.9%
|
-8.5%
|
| 2017 |
+1.2%
|
+4.7%
|
0.0%
|
+0.6%
|
+1.5%
|
+0.6%
|
+1.0%
|
+0.5%
|
+2.7%
|
+2.9%
|
+3.6%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
MSFT
|
MICROSOFT CORP |
6.0 % |
|
AAPL
|
APPLE INC |
5.6 % |
|
V
|
VISA INC CLASS A |
5.5 % |
|
NVDA
|
NVIDIA CORP |
4.8 % |
|
MA
|
MASTERCARD INC CLASS A |
4.7 % |
|
META
|
META PLATFORMS INC CLASS A |
3.7 % |
|
LLY
|
ELI LILLY AND CO |
3.5 % |
|
UNH
|
UNITEDHEALTH GROUP INC |
2.7 % |
|
TJX
|
TJX COMPANIES INC |
2.6 % |
|
NFLX
|
NETFLIX INC |
2.2 % |
Top 10 holdings shown, out of 125 total holdings.
Related ETFs: QUAL vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
The iShares MSCI USA Quality Factor ETF (QUAL) tracks the MSCI USA Sector Neutral Quality Index, which selects U.S. large- and mid-cap stocks based on three key quality metrics: return on equity (ROE), earnings variability, and financial leverage. The index is rebalanced quarterly to maintain sector neutrality, ensuring that the fund does not overweight any single industry. QUAL primarily holds common stocks of companies that exhibit strong profitability, low debt, and stable earnings growth. The fund's passive management approach aims to replicate the index's performance with minimal tracking error.
Frequently Asked Questions
What is the expense ratio of QUAL?
QUAL has an expense ratio of 0.15%, which is competitive among quality-focused ETFs.
Does QUAL pay dividends?
Yes, QUAL pays dividends quarterly, as it holds dividend-paying U.S. stocks, though its primary focus is on quality factors rather than yield.
How often is QUAL rebalanced?
QUAL's underlying index is rebalanced quarterly to maintain sector neutrality and update quality scores.
Is QUAL suitable for long-term investors?
Yes, QUAL is designed for long-term investors seeking exposure to financially stable companies with strong profitability metrics.
Industry Overview
The iShares MSCI USA Quality Factor ETF (QUAL) is part of the growing segment of factor-based investing, which targets specific characteristics like quality, value, or momentum. Quality investing focuses on companies with strong balance sheets, consistent earnings, and efficient management. QUAL provides a sector-neutral approach to quality, ensuring broad diversification while targeting these traits. This ETF is particularly relevant for investors seeking to reduce volatility and enhance long-term returns by focusing on financially stable companies. The U.S. equity market, where QUAL operates, is the largest and most liquid in the world, offering ample opportunities for quality-focused strategies.
Alternative Comparison
Compared to similar quality-focused ETFs like SPHQ (Invesco S&P 500 Quality ETF) and DGRW (WisdomTree U.S. Quality Dividend Growth Fund), QUAL stands out for its sector-neutral methodology, which prevents overexposure to any single industry. While SPHQ focuses solely on S&P 500 constituents, QUAL includes mid-cap stocks, offering broader market exposure. DGRW, on the other hand, emphasizes dividend growth alongside quality, making it more income-oriented. QUAL's expense ratio is competitive, aligning with other factor-based ETFs in the category.
Issuer Overview
iShares, a division of BlackRock, is the world's largest ETF provider, known for its broad range of index-tracking and factor-based funds. With a reputation for low-cost, transparent investment solutions, iShares offers QUAL as part of its factor ETF lineup, catering to investors seeking targeted exposure to quality stocks in the U.S. market.
Conclusion
The iShares MSCI USA Quality Factor ETF (QUAL) is a compelling choice for investors seeking exposure to high-quality U.S. companies with strong profitability and financial stability. Its sector-neutral approach ensures diversification while targeting quality factors, making it suitable for long-term portfolios. While it may underperform during speculative market rallies, QUAL's focus on financially sound companies positions it well for risk-adjusted returns over time.
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