Grantham's GMO Ventures Into ETF Arena With Quality Stock Focus
Portfolio Pulse from Piero Cingari
Boston-based investment firm Grantham Mayo Van Otterloo (GMO) is entering the ETF sector with its first ETF, the GMO U.S. Quality ETF (QLTY). The ETF will focus on high-quality equities. This move comes in response to increasing demand from intermediaries and wealth managers. However, GMO faces competition in the crowded $7.4 trillion ETF market. The iShares MSCI USA Quality Factor ETF (QUAL) has seen a nearly 20% return in 2023, outpacing the SPDR S&P 500 ETF Trust (SPY). QUAL's largest holdings are Nvidia Corp. (NVDA) and Visa Inc. (V).
August 21, 2023 | 7:35 pm
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POSITIVE IMPACT
Nvidia Corp. (NVDA) is the largest holding of the QUAL ETF at 5.7%.
As the largest holding of the QUAL ETF, NVDA's performance could significantly impact the ETF's overall performance. Given QUAL's strong performance, this could potentially be positive for NVDA.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
GMO's new ETF, QLTY, will focus on high-quality equities. The firm's entry into the ETF sector is in response to increasing demand.
The launch of QLTY is a significant move for GMO, marking its entry into the ETF sector. Given the firm's reputation and the increasing demand for ETFs, this could potentially attract significant investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares MSCI USA Quality Factor ETF (QUAL) has seen a nearly 20% return in 2023, outpacing the SPDR S&P 500 ETF Trust (SPY).
The strong performance of QUAL in 2023, particularly in comparison to SPY, indicates that quality factor ETFs are currently performing well. This could potentially attract more investors to QUAL.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Visa Inc. (V) is the second largest holding of the QUAL ETF at 4.5%.
As the second largest holding of the QUAL ETF, Visa's performance could significantly impact the ETF's overall performance. Given QUAL's strong performance, this could potentially be positive for Visa.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 60