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SQLT - ETF AI Analysis

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SQLT

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

Rating:72Outperform
Price Target:
SQLT, the iShares MSCI USA Small-Cap Quality Factor ETF, earns a solid overall rating thanks to several high-quality holdings with strong financial performance and positive outlooks. Standout positions like East West Bancorp, Woodward, Royal Gold, and Medpace Holdings support the fund’s quality focus through robust earnings, healthy balance sheets, and generally favorable technical trends, even though some show signs of rich valuations or overbought conditions. The main risk factor is that many top holdings share similar traits of high valuation and occasional bearish or overbought technical signals, which could increase volatility if market sentiment toward these quality small-cap names shifts.
Positive Factors
Strong Year-To-Date Results
The ETF has delivered solid gains so far this year, showing that its strategy has recently worked well for investors.
Quality Top Holdings
Many of the largest positions, such as Carpenter Technology, TD SYNNEX, Sterling Infrastructure, and Lattice Semiconductor, have shown strong performance, helping support the fund’s overall returns.
Diversified Sector Mix
Holdings spread across industrials, technology, financials, health care, and several other sectors help reduce the impact if any one industry runs into trouble.
Negative Factors
Recent Short-Term Weakness
The ETF has slipped over the past month, which may signal some short-term volatility or a pause in its recent strength.
Heavy U.S. Concentration
With almost all assets in U.S. companies and very little exposure abroad, the fund is highly tied to the health of the U.S. market.
Mixed Performance Among Top Holdings
While many top holdings are performing well, some positions like Royal Gold have been weak, which can drag on overall results if that continues.

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

SQLT Summary

The iShares MSCI USA Small-Cap Quality Factor ETF (SQLT) is a fund that follows the MSCI USA Small Cap Sector Neutral Quality Index. It focuses on smaller U.S. companies that show strong profits and solid balance sheets. The ETF spreads investments across many sectors, including holdings like The New York Times and Lattice Semiconductor. Someone might invest in SQLT to tap into the growth potential of small companies while aiming for a bit more stability than a typical small-cap fund. A key risk is that small-cap stocks can be more volatile and can go up and down sharply with the market.
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 U.S. small caps where quality is in the driver’s seat. Tech and industrial names like Manhattan Associates and Sterling Infrastructure have been rising sharply, giving the fund a solid boost, while Woodward and Carpenter Technology have recently lost some steam, tempering gains from earlier strength. Financials such as East West Bancorp are steady contributors, and Medpace and Tenet Healthcare add a healthy dose of momentum from the medical side. With broad sector balance and all holdings U.S.-based, no single name dominates, keeping the fund diversified even as a few standouts steer performance.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
National Fuel Gas Company1.17%$81.06K$7.89B-4.35%
77
Outperform
Manhattan Associates0.94%$65.42K$13.02B3.64%
75
Outperform
Royal Gold0.93%$64.40K$22.27B46.37%
78
Outperform
TD SYNNEX Corporation0.86%$59.43K$20.31B71.52%
73
Outperform
East West Bancorp0.80%$55.27K$17.73B23.11%
79
Outperform
Zebra Tech0.78%$54.18K$16.86B12.41%
72
Outperform
Medpace Holdings0.77%$53.46K$16.77B26.32%
79
Outperform
Carpenter Technology0.77%$53.36K$23.61B97.79%
75
Outperform
Woodward0.77%$53.32K$20.18B38.48%
79
Outperform
Tenet Healthcare0.75%$51.76K$21.48B44.74%
74
Outperform

SQLT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.81
Positive
100DMA
28.19
Positive
200DMA
Market Momentum
MACD
-0.03
Positive
RSI
48.76
Neutral
STOCH
50.96
Neutral
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 29.14, equal to the 50-day MA of 28.81, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 50.96 is Neutral, 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
$6.93M0.20%
72
Outperform
$90.23M0.04%
64
Neutral
$89.86M0.75%
64
Neutral
$87.31M0.18%
66
Neutral
$82.31M0.64%
66
Neutral
$67.80M0.61%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SQLT
iShares MSCI USA Small-Cap Quality Factor ETF
28.89
3.11
12.06%
BKSE
BNY Mellon US Small Cap Core Equity ETF
AIMS
Acuitas Small Cap Active 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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