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SQLT - ETF AI Analysis

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SQLT

iShares MSCI USA Small-Cap Quality Factor ETF (SQLT)

Rating:71Outperform
Price Target:
SQLT, the iShares MSCI USA Small-Cap Quality Factor ETF, has an overall rating that reflects a portfolio of generally strong, high-quality small-cap companies with solid financial performance and positive outlooks. Key holdings like Onto Innovation, Woodward, East West Bancorp, and Royal Gold support the fund’s quality focus through strong balance sheets, upbeat earnings calls, and favorable technical trends, though several names face valuation concerns and occasional short-term technical weakness, which adds some risk. The main risk factor is that many top holdings appear richly valued or potentially overbought, so the fund’s performance could be sensitive if market sentiment toward these higher-priced small caps shifts.
Positive Factors
Strong Top Holdings
Many of the largest positions have shown strong gains this year, helping support the ETF’s overall performance.
Broad Sector Diversification
Holdings spread across industrials, technology, financials, health care, and several other sectors help reduce the impact of weakness in any single industry.
Low Expense Ratio
The fund’s relatively low management fee means less of your return is eaten up by costs over time.
Negative Factors
Small-Cap Volatility
Because it focuses on smaller U.S. companies, the ETF can be more volatile and sensitive to economic swings than large-cap funds.
Heavy U.S. Concentration
With almost all assets in U.S. stocks, the fund offers little geographic diversification if the U.S. market struggles.
Top Holdings Still Relatively Small
Each individual holding makes up only a small slice of the portfolio, so even strong winners may have a limited impact on overall returns.

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

SQLT Summary

The iShares MSCI USA Small-Cap Quality Factor ETF (SQLT) invests in smaller U.S. companies that score well on financial strength and profitability. It follows the MSCI USA Small Cap Sector Neutral Quality Index, which looks for firms with solid earnings and lower debt across many sectors, including industrials, technology, and financials. Well-known holdings include Royal Gold and The New York Times. An investor might choose this ETF to tap into the growth potential of small companies while focusing on higher-quality businesses for diversification. However, it can still be volatile and can go up and down with the stock market, especially small-cap stocks.
How much will it cost me?This ETF has an expense ratio of 0.20%, which means you’ll pay about $2 per year for every $1,000 you invest. That cost is a bit higher than the cheapest index ETFs because it uses a rules-based “quality factor” strategy rather than simply tracking the entire small-cap market, but it’s still relatively low compared with many actively managed funds.
What would affect this ETF?This ETF could benefit if the U.S. economy stays healthy, interest rates stabilize or fall, and demand remains strong for industrial, technology, and financial companies, since it focuses on smaller, profitable U.S. firms like Fabrinet, Royal Gold, and the New York Times. On the downside, a U.S. recession, rising interest rates that hurt small businesses, or sector-specific setbacks in areas like industrials, tech, or regional banks could weigh on the fund, and any new regulations or credit tightening affecting smaller companies could also be a drag.

SQLT Top 10 Holdings

SQLT’s story is about quality small caps quietly doing the heavy lifting. Industrial names like Sterling Infrastructure and Carpenter Technology have been rising, giving the fund a strong backbone, while tech-oriented holdings such as Onto Innovation and Lattice Semiconductor add a growth engine with solid momentum, even if valuations look a bit rich. TD SYNNEX has also been a steady contributor from the tech and services side. On the flip side, National Fuel Gas and Royal Gold have been lagging, acting as mild brakes. The portfolio is broadly diversified across U.S. sectors, with no single name dominating performance.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
National Fuel Gas Company1.10%$75.57K$7.54B-6.51%
77
Outperform
Carpenter Technology1.00%$68.74K$29.67B114.31%
75
Outperform
Woodward0.95%$65.22K$24.91B67.05%
79
Outperform
Sterling Infrastructure0.86%$58.80K$21.50B215.88%
71
Outperform
East West Bancorp0.81%$55.67K$17.71B20.60%
79
Outperform
TD SYNNEX Corporation0.80%$55.19K$19.56B71.24%
73
Outperform
Lattice Semiconductor0.77%$52.73K$18.71B143.43%
71
Outperform
Onto Innovation0.75%$51.66K$15.30B207.86%
82
Outperform
New York Times0.75%$51.22K$11.95B30.69%
79
Outperform
Medpace Holdings0.72%$49.73K$15.92B75.22%
79
Outperform

SQLT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
27.77
Positive
100DMA
200DMA
Market Momentum
MACD
0.19
Positive
RSI
53.71
Neutral
STOCH
14.68
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SQLT, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 28.30, equal to the 50-day MA of 27.77, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 14.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SQLT.

SQLT Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$6.72M0.20%
71
Outperform
$93.50M0.75%
64
Neutral
$86.59M0.04%
65
Neutral
$86.06M0.18%
65
Neutral
$78.85M0.64%
66
Neutral
$67.07M0.61%
62
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SQLT
iShares MSCI USA Small-Cap Quality Factor ETF
28.34
2.56
9.93%
AIMS
Acuitas Small Cap Active ETF
BKSE
BNY Mellon US Small Cap Core Equity ETF
STXK
Strive 2000 ETF
RUSC
US Small Cap Equity Active ETF
SYZ
Lazard US Systematic Small Cap Equity 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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