Selcuk Oner/iStock Editorial via Getty Images The iShares MSCI USA Quality Factor ETF ( QUAL ) has performed well since I issued a hold rating on it back in July of 2025 . Dig deeper, though, and you’ll find that the US quality factor has been a notable laggard compared to the global stock market since late 2024. Indeed, QUAL has returned less than 16% in the past 12 months, underperforming the S&...
Selcuk Oner/iStock Editorial via Getty Images The iShares MSCI USA Quality Factor ETF ( QUAL ) has performed well since I issued a hold rating on it back in July of 2025 . Dig deeper, though, and you’ll find that the US quality factor has been a notable laggard compared to the global stock market since late 2024. Indeed, QUAL has returned less than 16% in the past 12 months, underperforming the S&P 500 modestly and losing major ground to international equities, as measured by the Vanguard FTSE All-World Ex-US ETF ( VEU ). Today, I reiterate a hold rating on the tech-heavy, cap-weighted fund. QUAL’s P/E is lofty—above 24x—while the technicals show waning absolute momentum. QUAL:ACWI... Quality Relative Weakness Last 2 Years Stockcharts.com Quality Factor Ranking Low Across Timeframes WisdomTree Funds QUAL Lags SPY & VEU YoY Stockcharts.com According to the issuer , QUAL seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks with quality characteristics as identified through certain fundamental metrics. The ETF provides investors with exposure to stocks with strong fundamentals, including high return on equity, stable year-over-year earnings growth, and low financial leverage. QUAL is a large ETF, now with more than $50 billion in assets under management as of the end of February. That’s actually down, though, from $53.5 billion at the time of my previous analysis. The annual expense ratio is low at just 15 basis points, while the trailing 12-month dividend yield is modest at only 0.91%. Share-price momentum is solid right now, earning the fund a B+ ETF Grade in that category by Seeking Alpha’s quantitative scoring system. But with poor relative strength, I assert that investors should compare QUAL to the S&P 500 and VEU, along with the all-country world index in this instance. Risk measures are likewise decent, but volatility has taken a turn higher in recent weeks—particularly as the Mag 7 stocks have turned south. QU...