FYI: As uncertainty mounts over the direction of the economy and financial markets, investors are flooding into exchange-traded funds focused on so-called quality stocks.
Quality stocks are those of companies with higher and more reliable profits, low debt and other measures of sustainable earnings. Presumably, these are the stocks that can withstand an economic downturn better than others, and advisers see exposure to quality as a way to reduce risk at a time when stock valuations are still high.
This year through September, some $4.6 billion has poured into ETFs focused on quality stocks, according to data from Bloomberg. That is more than the $3.5 billion that was invested in the strategy for all of last year and is the highest amount ever in any calendar year, says Todd Rosenbluth, who heads ETF and mutual-fund research at CFRA, a New York financial-data provider.
Regards,
Ted
https://www.wsj.com/articles/investors-rush-into-quality-stocks-11570413961
