iShares MSCI USA Quality GARP ETF

GARP

Market cap $1.22B

The iShares MSCI USA Quality GARP ETF (GARP) targets U.S. large and mid caps with strong growth, value, and quality metrics. GARP's methodology blends historical and forward growth screens, market cap weighting, and valuation/quality tilts, capping individual holdings at 5%. Since inception, GARP has returned 183%, outperforming the S&P 500, IWF, and QUAL, with volatility comparable to growth strategies.

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.

The current market is all about momentum, but investors don't need to buy overpriced high-growth stocks to participate in gains. If you dig deep enough, you can find undervalued stocks with growth potential in both the short term and the long run. Across varied sectors like healthcare, technology, and finance, as well as non-U.S. countries with growth potential, a select group of stocks can combine those qualities.

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

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.