iShares MSCI USA Quality Factor ETF
Price
$224.60
YTD
+14.80%
Expense
0.15%
Yield
1.45%
🇺🇸 United States
Best Quality Factor ETFs
Top ETFs that screen for high-quality companies with strong balance sheets, stable earnings, and competitive moats.
Quality Factor: Investing in the Best Companies
Quality factor ETFs identify and invest in companies with superior business characteristics — high profitability, low debt, stable earnings growth, and strong competitive positions. Academic research shows the quality factor has delivered premium returns over long periods with lower drawdowns.
🏆 Winner — #1 pick
Vanguard Dividend Appreciation ETF
Price
$243.23
YTD
+12.80%
Expense
0.06%
Yield
1.75%
iShares Core Dividend Growth ETF
Price
$79.28
YTD
—
Expense
0.08%
Yield
2.30%
Frequently asked questions
What is the quality factor in investing?
The quality factor targets companies with strong fundamentals, including high profitability, low debt, stable earnings growth, and competitive advantages.
Which ETF is the top pick for quality factor investing?
QUAL (iShares MSCI USA Quality Factor ETF) is the top pick.
What does QUAL focus on?
QUAL invests in U.S. companies with high return on equity (ROE), stable earnings growth, and low leverage.
What is the price of QUAL?
QUAL is priced at approximately $193.16.
What is the yield of QUAL?
QUAL offers a yield of about 1.45%.
Which ETF is a runner-up focusing on quality dividend growth?
VIG (Vanguard Dividend Appreciation ETF) tracks companies with 10+ consecutive years of dividend increases.
What is the price of VIG?
VIG is priced at approximately $216.02.
What yield does VIG provide?
VIG offers a yield of around 1.75%.
Which ETF focuses on dividend growth for companies with 5+ years of consecutive increases?
DGRO (iShares Core Dividend Growth ETF) targets companies with at least 5 consecutive years of dividend growth.
What is the price of DGRO?
DGRO is priced at approximately $70.31.
What yield does DGRO provide?
DGRO offers a yield of about 2.3%.
Why invest in quality factor ETFs?
Quality factor ETFs aim to deliver premium long-term returns with lower drawdowns by selecting financially strong and stable companies.
How does QUAL differ from VIG and DGRO?
QUAL focuses on financial quality metrics like ROE and low leverage, while VIG and DGRO focus on consistent dividend growth.
What is the expense ratio of QUAL?
QUAL has an expense ratio of 0.15%.
What is the expense ratio of VIG?
VIG has an expense ratio of 0.06%.
What is the expense ratio of DGRO?
DGRO has an expense ratio of 0.08%.
Are quality factor ETFs suitable for long-term investing?
Yes, they tend to outperform broad market indices over the long term while reducing risk through financial strength and stability.
Can quality factor ETFs be combined with dividend ETFs?
Yes, combining quality ETFs like QUAL with dividend-focused ETFs like VIG or DGRO can provide both growth and income.
What types of companies are included in QUAL?
QUAL includes large and mid-cap U.S. companies with high profitability, low debt, and stable earnings.
What is the overall strategy of investing in quality factor ETFs?
Invest in financially strong, low-risk companies with consistent performance to achieve long-term growth with reduced volatility.