Quality US Equities Lay Path To Gains In 2024: 3 ETFs To Consider
Portfolio Pulse from Surbhi Jain
State Street Global Advisors recommends quality U.S. equities for gains in 2024, despite challenges like high interest rates and soft demand outlook. They suggest that high-quality companies with stable earnings and strong balance sheets will outperform. Three ETFs to consider are SPDR MSCI USA Strategic Factors ETF (QUS), iShares MSCI USA Quality Factor ETF (QUAL), and Invesco S&P 500 Quality ETF (SPHQ), which focus on quality-centric upside with a defensive bias.
December 28, 2023 | 3:14 pm
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POSITIVE IMPACT
iShares MSCI USA Quality Factor ETF (QUAL) is highlighted for providing exposure to large-cap U.S. stocks with positive fundamentals like high ROE, stable earnings growth, and low financial leverage.
QUAL is mentioned as an ETF that provides exposure to high-quality U.S. equities, which are expected to outperform in 2024, potentially leading to increased demand for QUAL shares.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
SPDR MSCI USA Strategic Factors ETF (QUS) is recommended by State Street Global Advisors for its multi-factor U.S. strategy blending Quality, Value, and Minimum Volatility, aiming for a quality-centric upside with a defensive bias.
QUS is directly recommended by State Street Global Advisors as a strategic investment for 2024, which could lead to increased investor interest and potential short-term gains.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Invesco S&P 500 Quality ETF (SPHQ) tracks high-quality stocks in the S&P 500 based on ROE, accruals ratio, and financial leverage, and is recommended for 2024.
SPHQ is recommended due to its focus on high-quality S&P 500 stocks, which are likely to be in favor in 2024, potentially leading to short-term price appreciation.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80