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U.S. Quality ETF (QUAL) Hits New 52-Week High

Zacks Equity Research

For investors seeking momentum, iShares MSCI USA Quality Factor ETF (QUAL) is probably on their radar now. The fund just hit a 52-week high, and is up roughly 62.6% from its 52-week low price of $41.10/share.


But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.


QUAL in Focus    


QUAL provides exposure to the 125 U.S. large and mid-cap stocks. The fund does not have company-specific concentration risks with none making up more than 5.17% of the portfolio. While information technology tops the fund’s portfolio with 20.47% share, financials (16.18%), healthcare (14.95%) and consumer discretionary (14.02%) account for double-digit exposure each. The product charges investors 15 basis points in fees (see: Total Market (U.S.) ETFs here).


Why the Move?


The large cap segment of the broad U.S. stock market has been an area to watch lately on a spate of better-than-expected earnings results. This has sparked off confidence among investors. In particular, the top-most weight of the fund, technology sector, has been an outperformer this season, followed by healthcare. Moreover, financials stocks are also performing well on expectations of a sooner-than-expected lift-off.

 

More Gains Ahead?


The fund has a positive weighted alpha of 9.53. A positive weighted alpha hints at more gains. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely some promise for those who want to ride this surging ETF a little further.


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ISHARS-MS US QF (QUAL): ETF Research Reports
 
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