SPDR® MSCI USA StrategicFactors ETF (QUS)

ETF SPDR® MSCI USA StrategicFactors ETF (QUS) Overview

Profile:

QUS is an ETF that tracks the performance of the MSCI USA StrategicFactors Index. This index is designed to capture the performance of US large and mid-cap stocks that exhibit certain factors, including value, momentum, quality, and size. The ETF has an equity allocation of 98.09% and mainly focuses on the technology (26.43%), healthcare (14.17%), and financials (12.11%) sectors.

Objective:

QUS seeks to track the performance of the MSCI USA StrategicFactors Index, which aims to outperform the broad US equity market by selecting stocks with favorable factor exposures.

Issuer:

The ETF is issued by State Street Global Advisors, Inc., a subsidiary of State Street Corporation. State Street is a leading provider of financial services to institutional investors worldwide. The company has a long history and a strong reputation in the ETF industry.

Market Share:

QUS has a market share of approximately 0.5% in the US smart beta equity ETF industry.

Total Net Assets:

As of November 11, 2023, QUS has total net assets of $99.29 million.

Moat:

QUS's competitive advantage lies in its unique index methodology. The MSCI USA StrategicFactors Index selects stocks based on a combination of four factors, which aims to provide diversification and potentially enhance returns.

Financial Performance:

Over the past 3 years (as of November 10, 2023), QUS has delivered a total return of 29.35%, exceeding the S&P 500's return of 24.68%.

Growth Trajectory:

The smart beta ETF market is expected to grow steadily in the coming years, driven by increasing demand for factor-based investing strategies.

Liquidity:

QUS has an average daily trading volume of over 150,000 shares, indicating relatively good liquidity. The bid-ask spread is also tight, averaging around 0.02%.

Market Dynamics:

Factors like economic growth, interest rate changes, sector performance, and investor sentiment can impact the ETF's market environment.

Competitors:

Some key competitors include iShares Edge MSCI USA Momentum Factor ETF (MOM), iShares MSCI USA Quality Factor ETF (QUAL), and Vanguard US Value Factor ETF (VTV).

Expense Ratio:

QUS has an expense ratio of 0.15%, which is considered low compared to similar ETFs.

Investment Approach and Strategy:

QUS passively tracks the MSCI USA StrategicFactors Index, which selects stocks based on value, momentum, quality, and size factors. The ETF primarily invests in US large and mid-cap stocks.

Key Points:

• Tracks a unique index that combines four factors.
• Outperformed the S&P 500 over the past 3 years.
• Has relatively good liquidity.
• Low expense ratio.

Risks:

• Volatility: The ETF's value can fluctuate significantly due to market changes.
• Market Risk: The ETF's performance is tied to the performance of the US stock market.
• Factor Investing Risk: The factors used in the index selection may not always outperform the broader market.

Who Should Consider Investing:

Investors who are looking for a diversified factor-based exposure to the US stock market with potentially enhanced returns compared to the broad market index.

Fundamental Rating Based on AI:

Based on an AI analysis considering various factors like financial performance, market position, and future prospects, QUS receives a 7/10 rating. The ETF demonstrates promising aspects with its unique factor-based approach and positive performance history. However, the relatively small market share and competition within the smart beta ETF landscape are factors to consider.

Resources and Disclaimers:

• https://www.ssga.com/us/en/individual/etfs/etf-library-detail?ticker=QUS
• https://www.msci.com/index-methodology/factor-indexes/msci-factor-indexes
• This analysis is based on information available as of November 11, 2023, and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial professional before making any investment decisions.