QLTY - ETF AI Analysis
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GMO U.S. Quality ETF (QLTY)
QLTY, the GMO U.S. Quality ETF, is driven by large positions in high-quality tech leaders like Microsoft, Alphabet, and Apple, whose strong financial performance, growth in cloud and AI, and generally supportive technical trends lift the fund’s overall quality. Some holdings such as Amazon and Thermo Fisher add solid fundamentals but face issues like premium valuations, mixed technical signals, and cash flow or segment challenges, which modestly restrain the rating. The main risk factor is the ETF’s heavy concentration in U.S. mega-cap technology and AI-related companies, which can increase sensitivity to that sector’s cycles and valuation pressures.
QLTY vs. SPDR S&P 500 ETF (SPY)
- AUM
- 5.49B
- Region
- North America
- Expense Ratio
- 0.50%
- Beta
- 0.93
- Issuer
- GMO
- Inception Date
- Nov 13, 2023
- Dividend Yield
- 0.65%
- Asset Class
- Equity
- Index Tracked
- No Underlying Index
QLTY Summary
QLTY is the GMO U.S. Quality ETF, focused on owning high-quality U.S. companies rather than tracking a specific index. It invests across the whole U.S. stock market, with a tilt toward strong businesses in technology and health care. Well-known holdings include Microsoft, Apple, Amazon, and Nvidia. Investors might consider QLTY if they want broad diversification in U.S. stocks while emphasizing companies with solid finances and steady earnings, aiming for long-term growth. A key risk is that it is still a stock-focused fund, so its value can rise and fall with the overall U.S. market, especially large tech names.
How much will it cost me?
This ETF has an expense ratio of 0.50%, which means you’ll pay about $5 per year for every $1,000 you invest. That’s higher than the average low-cost index ETF because this fund is actively managed, aiming to select high-quality U.S. companies rather than simply tracking a broad market index.
What would affect this ETF?
QLTY could benefit if large U.S. technology and health care companies like Microsoft, Apple, and Johnson & Johnson continue to grow, as well as from a strong U.S. economy that supports consumer and communication services businesses. On the downside, higher interest rates, tighter regulations on big tech or health care, or a broad U.S. market downturn could hurt these sectors and reduce the ETF’s performance.
QLTY Top 10 Holdings
QLTY leans heavily on U.S. tech and healthcare, with Microsoft and Apple acting as steady engines of growth, helped by a rising Texas Instruments that’s giving the semiconductor sleeve extra punch. On the healthcare side, Johnson & Johnson and Thermo Fisher have been quietly climbing, adding a defensive backbone to the fund. The main speed bumps come from Alphabet and Meta, where performance has been mixed to lagging lately, tempering some of the tech enthusiasm. Overall, it’s a U.S.-centric, quality-first portfolio with a clear tilt toward Big Tech and medical leaders.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 MSFT | Microsoft | 7.96% | $437.17M | $3.88T | -0.73% | 79Outperform |
 JNJ | Johnson & Johnson | 4.44% | $243.65M | $657.68B | 44.51% | 78Outperform |
 TMO | Thermo Fisher | 4.38% | $240.70M | $257.71B | 25.31% | 72Outperform |
 AAPL | Apple | 4.38% | $240.53M | $5.03T | 26.98% | 79Outperform |
 GOOGL | Alphabet Class A | 4.19% | $230.15M | $3.41T | -0.58% | 85Outperform |
 META | Meta Platforms | 4.01% | $220.22M | $1.57T | -7.72% | 76Outperform |
 TXN | Texas Instruments | 3.96% | $217.44M | $274.90B | 87.43% | 78Outperform |
 AMZN | Amazon | 3.56% | $195.31M | $2.59T | 7.85% | 71Outperform |
 AVGO | Broadcom | 3.40% | $186.57M | $1.56T | -13.38% | 76Outperform |
 LRCX | Lam Research | 3.17% | $173.92M | $298.69B | 48.51% | 77Outperform |
QLTY Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QLTY, the sentiment is Neutral. The current price of 43.56 is below the 20-day moving average (MA) of 43.85, above the 50-day MA of 43.25, and above the 200-day MA of 40.64, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QLTY.
QLTY Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| QLTY | $43.56 | $49.00(12.49% Upside) | $5.49B | 0.50% | 75Outperform |
 AKRE | $59.09 | $71.20(20.49% Upside) | $4.89B | 0.98% | 68Neutral |
 TSPA | $47.54 | $59.08(24.28% Upside) | $4.73B | 0.34% | 74Outperform |
 DCOR | $83.47 | $101.13(21.15% Upside) | $3.70B | 0.14% | 72Outperform |
 FTHI | $23.29 | $28.11(20.70% Upside) | $2.59B | 0.75% | 70Neutral |
 APUE | $46.70 | $56.89(21.81% Upside) | $2.50B | 0.31% | 70Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| QLTY | GMO U.S. Quality ETF | 43.56 | 6.51 | 17.56% | |
| AKRE | Akre Focus ETF | 59.09 | -5.54 | -8.57% | |
| TSPA | T. Rowe Price U.S. Equity Research ETF | 47.54 | 4.76 | 11.12% | |
| DCOR | Dimensional US Core Equity 1 ETF | 83.47 | 11.30 | 15.67% | |
| FTHI | First Trust BuyWrite Income ETF | 23.29 | 1.51 | 6.94% | |
| APUE | ActivePassive U.S. Equity ETF | 46.70 | 5.38 | 13.01% |
This 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.