This Quality-Focused Fund is Raking in Assets

metroThe iShares Edge MSCI USA Quality Factor ETF (NYSE:QUAL) probably shouldn’t be flying under the radar anymore, considering the massive amount of assets piling into the fund over the past week.

The fund (expense ratio: 0.15%) has pulled in more than $300 million in the past week or so, giving it a boost of more than $1.2 billion now in new assets created in the fund year-to-date. While QUAL only launched in July of 2013, it is now a more than $3.2 billion fund, and likely becoming more familiar to a broader base of ETF portfolio managers and investors.

The fund tracks an index known as the “MSCI USA Quality Index,” which according to fund literature provides “exposure to large and mid-cap U.S. stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage.” According to iShares, the “Quality” factor is a “specific factor which has historically driven a significant part of companies’ risk and return.”

When we peel open the orange so to speak on QUAL we see one hundred twenty four individual equity holdings within this index, with top ten portfolio exposure as follows: 1) JNJ (6.04%), 2) PEP (4.82%), 3) AAPL (4.74%), 4) MSFT (4.53%), 5) BRK.B (3.91%), 6) GILD (2.90%), 7) XOM (2.58%), 8) BA (2.56%), 9) MMM (2.56%), 10) T (2.48%).


QUAL shares rose $0.46 (+0.69%) to $67.42 in Monday afternoon trading. Year-to-date, QUAL has gained 4.41%, versus a 6.07% rise in the benchmark S&P 500 during the same period.

About the Author: Paul Weisbruch
paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.

Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.