Latest news with #qualitystocks
Yahoo
a day ago
- Automotive
- Yahoo
Why quality non-US stocks are the 'cream of the crop'
Richard Bernstein Advisors (RBA) CEO Rich Bernstein joins Market Domination with Yahoo Finance Markets Reporter Josh Schafer and Interactive Brokers chief strategist Steve Sosnick to explain why he recommends quality non-US stocks that have been overlooked. To watch more expert insights and analysis on the latest market action, check out more Market Domination. What are the other companies then, Rich? W- Where do you have your your eyes set on? So for me personally, I think I think the cream of the crop of the companies that are uh growing the same or better and people are ignoring would be quality stocks outside the United States. Look, let's let's set the stage here for a second. I don't think most people realize that the Euro stocks index is up about 20 something percent this year. Germany is up 30 something percent in US dollar terms versus Nasdaq up 9 to 10. Right? So the backdrop is you've already got a lot of performance going on that nobody cares about, but if you look at non-US quality, their growth rate, their anticipated growth rate is the same in some cases better than the MAG 7. They give you 10 times the dividend yield, basically 0.3 versus three, and they're selling at discounts of 30 to 50%. So Josh, the way I'd like to think about it is, if you could buy a Maserati for the price of a Chevy, wouldn't you do it? I think you probably would, and I think you'd probably ask me for two or three of them. Well, that's basically what's going on as the Maseratis are on sale. But Rick, you recently contributed to our Yahoo Finance chart book and so too did Steve Sosnick who's sitting next to me and you just hit on essentially exactly what Steve and I talked about during that project. Steve, you highlighted international stocks, right? And you you pointed out that rally. I mean, what do you make of sort of that side of the trade? Is there still more opportunity given the rally that we've seen outside of the US? Is that an area that you'd still be looking for? I would be, because for the for the reasons uh Rich just said. I mean, there there's a there are a lot of stocks that have been overlooked for years, and certainly you can't one thing you can't say about the the MAG 7 and friends is that they've been overlooked. Everybody everybody who's anywhere, thanks to um just their weights and indexes and FOMO and all these other factors, have been investing in them. So um yes, if you can if you can find these alternatives outside the US or or wherever, well, you know, even in the US, but but generally there's there's more of them outside the US. People have gotten um more tuned to that, um I think, you know, as the as the calendar turned, uh but that trade is not over yet. There there's still there's still plenty of value out there. I'm certainly not going to argue with that.
Yahoo
18-06-2025
- Business
- Yahoo
Invest in Quality ETFs to Tap Current Market Trends
Wall Street has been on a strong run in recent weeks, driven by optimism over trade talks, easing inflation and momentum in artificial intelligence. The S&P 500 rallied to near record highs above 6,100 but has pulled back in recent sessions amid escalating geopolitical tensions following Iran-Israel such a scenario, investors should focus on high-quality investing. Quality stocks possess a sustainable competitive advantage and demonstrate consistent growth, profitability and operational excellence over time. While there are several funds available in the space, we have chosen the five most popular ETFs targeting the niche strategy. These are iShares MSCI USA Quality Factor ETF QUAL, Invesco S&P 500 Quality ETF SPHQ, JPMorgan U.S. Quality Factor ETF JQUA, FlexShares Quality Dividend Index Fund QDF and SPDR MSCI USA StrategicFactors ETF Donald Trump escalated his rhetoric against Iran, calling for its "unconditional surrender." Reports now indicate that the United States is actively weighing military action, as Trump convened his national security team at the White House, stoking fears of a broader regional are also grappling with uncertainty surrounding Trump's trade policies and the outlook for U.S. interest rates. With the deadline to lift the pause on sweeping tariffs fast approaching, U.S. officials have used the G7 summit to press for new trade agreements. RBC has warned that these geopolitical and economic risks could spark a sharp market correction of up to 20%, especially if oil prices surge or expectations for Fed rate cuts fade. Quality ETFs often provide a hedge against market volatility and uncertainty. We have highlighted some solid reasons for investing in quality Volatility: Quality stocks tend to exhibit lower volatility compared to the broader market. Their robust business models and financial strength make them less susceptible to market fluctuations, leading to a smoother investment Nature: During economic downturns, quality stocks often prove more resilient as they have strong balance sheets and low levels of debt and cash reserves to help them tide over challenging times (read: 5 Defensive ETF Strategies to Follow Amid Israel-Iran Tensions).Value Preservation: In uncertain or declining market environments, quality stocks can serve as a relative safe haven, preserving capital better than more speculative or lower-quality Brand and Moat: Quality companies often possess strong brands and competitive moats, which protect them from competition. This can lead to a sustainable competitive advantage, ensuring long-term Outperformance: Historically, high-quality companies have consistently delivered superior risk-adjusted returns compared with the broader market over the long term. This is because quality companies have strong fundamentals that can weather economic downturns better than their weaker Profitability: Quality companies tend to have a high return on equity (ROE), return on invested capital (ROIC) and profit margins. These are indicators of a company's ability to generate profit Effect: Betting on quality companies allows investors to benefit from the power of compounding. As these companies consistently grow their earnings and reinvest them, shareholders can achieve exponential returns over and Governance: High-quality companies usually have transparent financial reporting and sound corporate governance. This reduces the chances of any unwelcome surprises and can potentially reduce investment Potential: Even if they are established leaders, many quality companies still have significant room for growth, especially if they operate in expanding industries or have opportunities to penetrate new Payouts: Quality companies often have a history of paying consistent dividends, providing a source of income for investors. Moreover, since they are typically in a strong financial position, there is a good chance of steady or even increasing dividend payouts in the future. iShares MSCI USA Quality Factor ETF (QUAL)With an AUM of $51.6 billion, iShares MSCI USA Quality Factor ETF provides exposure to large and mid-cap stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage) by tracking the MSCI USA Sector Neutral Quality Index. QUAL holds 125 stocks in its basket and charges 15 bps in annual fees. It trades in an average daily volume of 1.2 million shares and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Investing Playbook for H2 2025: Quality, AI, and Gold). Invesco S&P 500 Quality ETF (SPHQ) Invesco S&P 500 Quality ETF tracks the S&P 500 Quality Index, a benchmark of S&P 500 stocks with the highest-quality score based on three fundamental measures such as return on equity, accruals ratio and financial leverage ratio. Holding 101 stocks in its basket, Invesco S&P 500 Quality ETF has amassed $13.7 billion in its asset base and trades in an average daily volume of 1 million shares. It charges 15 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a Medium risk U.S. Quality Factor ETF (JQUA)JPMorgan U.S. Quality Factor ETF provides domestic equity exposure with a focus on companies with strong quality and profitability characteristics and the potential to enhance returns. It tracks the JP Morgan US Quality Factor Index and holds 273 stocks in its basket. JPMorgan U.S. Quality Factor ETF has amassed $6.2 billion in its asset base and charges 12 bps in fees per year. It trades in an average daily volume of 637,000 shares. FlexShares Quality Dividend Index Fund (QDF)FlexShares Quality Dividend Index Fund tracks the Northern Trust Quality Dividend Index. It is home to 140 stocks in its basket and charges 37 bps in fees per year. FlexShares Quality Dividend Index Fund has accumulated $1.8 billion in its asset base and trades in an average daily volume of 33,000 shares. It has a Zacks ETF Rank #3 with a Medium risk MSCI USA StrategicFactors ETF (QUS)SPDR MSCI USA StrategicFactors ETF offers exposure to stocks that combine low volatility, quality and value factor strategies. This is done by tracking the MSCI USA Factor Mix A-Series Capped Index. SPDR MSCI USA StrategicFactors ETF holds 548 stocks in its basket and charges 15 bps in fees per year from investors. It has attracted $1.5 billion in its asset base and trades in an average daily volume of 31,000 shares. QUS has a Zacks ETF Rank #3 with a Medium risk outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports FlexShares Quality Dividend ETF (QDF): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports JPMorgan U.S. Quality Factor ETF (JQUA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
10-06-2025
- Business
- Bloomberg
US Quality Stocks Are on Sale: Manulife JHI's Miskin
00:00 Lisa Shalett of Morgan Stanley making the point that she believes this is a market looking for a credible narrative. Do you think there is one? Earnings growth is the last bastion and the most important fundamental driver of stocks in the US. Earnings growth is there. We're seeing about 13 14% earnings growth, but no one cares actually. US quality stocks are the worst performers within the US equity market and for the global market, quality is on sale. The US is on sale. The sell American trade that we've seen for much of this year has made U.S. assets of the best value we're seeing per pound for pound for the earnings growth are getting. So earnings growth is the only thing that's going to get there. In Europe, earnings are down on a year over year basis. About 4% in small caps are down and midcaps are about flat. U.S. large cap quality stocks have the best earnings. The only problem is markets don't seem to be paying attention to it.
