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QUAL - ETF AI Analysis

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QUAL

iShares MSCI USA Quality Factor ETF (QUAL)

Rating:75Outperform
Price Target:
QUAL, the iShares MSCI USA Quality Factor ETF, earns a solid rating mainly because many of its largest holdings—like Microsoft, Apple, Nvidia, and Lam Research—show strong financial performance, positive earnings outlooks, and promising growth in areas such as cloud, AI, and advanced technologies. This strength is slightly tempered by risks like high valuations, some bearish or mixed technical signals in names such as Nvidia and Visa, and exposure to regulatory or trade issues in certain tech holdings, meaning investors benefit from quality growth but should be aware of valuation and sector-related risks.
Positive Factors
Strong Overall Performance
The ETF has shown steady gains over the past year-to-date and recent months, indicating solid momentum.
Quality Growth Leaders in Top Holdings
Several major positions like Nvidia, Lam Research, Applied Materials, and Eli Lilly have delivered strong performance, helping drive the fund’s returns.
Low Expense Ratio
The fund’s relatively low annual fee means more of the investment gains can stay in investors’ pockets over time.
Negative Factors
Heavy Concentration in a Few Stocks
A significant portion of the portfolio is tied up in a small number of large companies, which increases the impact if any of them run into trouble.
Mixed Results Among Top Tech Holdings
Some key technology names like Microsoft and Meta have shown weaker recent performance, which can weigh on the ETF given its sizable tech exposure.
Limited Geographic Diversification
With almost all assets invested in U.S. companies, the fund is highly sensitive to the health of the U.S. market and offers little international diversification.

QUAL vs. SPDR S&P 500 ETF (SPY)

QUAL Summary

QUAL is an ETF that follows the MSCI USA Sector Neutral Quality Index, focusing on U.S. companies with strong finances and steady earnings. It holds many well-known names like Apple and Microsoft, along with other large, established businesses across technology, healthcare, and consumer sectors. Someone might invest in QUAL to get broad exposure to high-quality U.S. stocks in a single, diversified fund, aiming for more stable long-term growth than the overall market. A key risk is that it still invests in stocks, so its value can go up and down with the market, especially if large tech companies struggle.
How much will it cost me?The iShares MSCI USA Quality Factor ETF (QUAL) has an expense ratio of 0.15%, which means you’ll pay $1.50 per year for every $1,000 invested. This is lower than average because QUAL is passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?QUAL's strong focus on high-quality U.S. companies, particularly in technology and financial sectors, positions it well to benefit from innovation and stable earnings growth in these industries. However, its heavy reliance on technology could make it vulnerable to regulatory changes or economic slowdowns affecting tech companies. Broader economic conditions, such as interest rate fluctuations, could also impact financial sector performance and overall market sentiment.

QUAL Top 10 Holdings

QUAL is powered by a high-quality roster of U.S. large caps, with Big Tech firmly at the wheel. Apple has been rising steadily, giving the fund a solid boost, while Nvidia’s performance has turned more mixed, no longer the runaway engine it was earlier. Microsoft and Meta are losing a bit of steam, acting as mild drags despite strong long-term stories in cloud and AI. On the plus side, Eli Lilly and the semiconductor trio Lam Research, Applied Materials, and KLA are humming along, reinforcing QUAL’s tech-heavy, U.S.-centric tilt.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Microsoft7.43%$3.50B$3.45T-8.96%
79
Outperform
Apple6.45%$3.04B$4.54T49.21%
79
Outperform
Nvidia5.96%$2.80B$4.86T14.80%
76
Outperform
TJX Companies3.94%$1.85B$173.81B21.88%
79
Outperform
Meta Platforms3.87%$1.82B$1.42T-23.97%
76
Outperform
Eli Lilly & Co3.54%$1.66B$1.08T45.82%
72
Outperform
Lam Research3.47%$1.63B$366.44B199.37%
77
Outperform
Applied Materials3.13%$1.48B$403.07B183.45%
77
Outperform
Visa3.13%$1.47B$651.42B6.87%
70
Outperform
KLA2.44%$1.15B$238.81B99.59%
77
Outperform

QUAL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
217.24
Positive
100DMA
209.87
Positive
200DMA
204.22
Positive
Market Momentum
MACD
1.85
Negative
RSI
67.73
Neutral
STOCH
84.91
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QUAL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 219.37, equal to the 50-day MA of 217.24, and equal to the 200-day MA of 204.22, indicating a bullish trend. The MACD of 1.85 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 84.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QUAL.

QUAL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$47.90B0.15%
75
Outperform
$661.48B0.03%
73
Outperform
$111.76B0.04%
73
Outperform
$94.34B0.03%
73
Outperform
$47.70B0.17%
72
Outperform
$43.00B0.03%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QUAL
iShares MSCI USA Quality Factor ETF
224.97
42.58
23.35%
VTI
Vanguard Total Stock Market ETF
VIG
Vanguard Dividend Appreciation ETF
ITOT
iShares Core S&P Total U.S. Stock Market ETF
DFAC
Dimensional U.S. Core Equity 2 ETF
SCHB
Schwab U.S. Broad Market ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis 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.Date of analysis: ―
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