iShares MSCI USA Quality GARP ETF

GARP

Market cap $732M

iShares MSCI USA Quality GARP ETF receives a buy rating for its alpha-seeking, growth-at-a-reasonable-price strategy versus the S&P 500. GARP delivers strong outperformance and risk-adjusted returns, but with higher volatility, sector concentration, and valuation multiples than VOO. The ETF's dynamic, concentrated approach focuses on high-quality tech leaders, offering potential for enhanced returns but greater sensitivity to market swings.

The best ETFs to diversify for volatility and falling interest rates include high-quality large caps, small-cap growth, international equities, and gold. The macro environment points to mild stagflation, but there's no recession in sight, allowing investors to balance caution with optimism in a resilient market, despite some economic weakness. Although the first few months following the Fed's initial rate cut have historically been volatile, equities tend to push higher over the next six to 12 months.

Launched on 01/14/2020, the iShares MSCI USA Quality GARP ETF (GARP) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.

I rate iShares MSCI USA Quality GARP ETF a buy, citing its strong price momentum, diversified portfolio, and lower risk profile. GARP's focus on high-quality, reasonably valued large- and mid-cap growth stocks positions it to outperform the S&P 500 in bullish markets. The ETF's top holdings include leaders like NVIDIA, Microsoft, and Apple, with a sector allocation favoring technology, communication, and consumer cyclical.

Making its debut on 01/14/2020, smart beta exchange traded fund iShares MSCI USA Quality GARP ETF (GARP) provides investors broad exposure to the Style Box - All Cap Growth category of the market.

iShares MSCI USA Quality GARP ETF (GARP) holds 135 growth stocks weighted based on value and quality. Although the strategy is multi-factor, growth is preeminent and GARP is overweight in technology. Compared to peers, GARP offers a lower expense ratio and nearly identical Sharpe ratio to top-performing QGRW.

Launched on 01/14/2020, the iShares MSCI USA Quality GARP ETF (GARP) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.

iShares MSCI USA Quality GARP ETF offers a balanced alternative to SPY, focusing on growth at a reasonable price with quality and value tilts. GARP's top-heavy allocation is more evenly distributed than SPY, reducing over-reliance on a few large-cap stocks. The fund's heavy tech allocation may benefit from the AI revolution, though it carries higher risk during market downturns.

The iShares MSCI USA Quality GARP ETF changed its strategy and ticker on June 3, 2024, and now selects stocks based on a comprehensive system evaluating growth, value, and quality. Backtested results of GARP's new Index indicate it is more predictable than concentrated alternatives like IWY and SCHG, offering investors higher lows but lower highs. My fundamental analysis confirmed GARP's strength on the quality factor, but its growth and value combination was not necessarily better than IWY and SCHG.

Making its debut on 01/14/2020, smart beta exchange traded fund iShares MSCI USA Quality GARP ETF (GARP) provides investors broad exposure to the Style Box - All Cap Growth category of the market.