With U.S. stocks continuing to flail, investors seeking long equity exposure might want to give renewed attention to the quality factor.
Stocks with the quality designation are, broadly speaking, less volatile than their lower quality peers, dividend payers and raisers and prolific cash generators. Those traits increase the allure of an arrary of exchange traded funds that focus on the quality factor, a group that includes the $1 billion iShares MSCI USA Quality Factor ETF (NYSE: QUAL).
QUAL, which recently celebrated its second anniversary, follows the MSCI USA Sector Neutral Quality Index. That “index aims to capture the performance of securities that exhibit stronger quality characteristics relative to their peers within the same GICS sector by identifying stocks with high quality scores based on three main fundamental variables: high Return-on-Equity (ROE), low leverage and low earnings variability,” ...
/www.benzinga.com/trading-ideas/long-ideas/15/09/5817295/another-etf-for-lovers-of-quality-stocks alt=Another ETF For Lovers Of Quality Stocks>Full story available on Benzinga.com
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