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Since QLTY's November 2023 launch, it is up 18.2%. That leads its multi-cap core Lipper peer group by 150 bps. The S&P 500 is up 17%. The GQG Partners US Select Quality is up 27%.
But GMO has dramatically outperformed GQG over the past five months (1, 2, 3, 4 and 5 month periods) while underperforming for six months and out. Curious.
@Mark, You and I posted simultaneously. I was posting in response to David's curiosity. May be I should quote posts or address to specific person more often than I do to avoid confusion for the readers.
@Observant - “The last time I checked, QLTY didn't hold NVDA or TSLA but it held the five other Magnificent 7 stocks.”
That’s what I noticed at M*. NVDIA has so thoroughly out-performed (excluding last 2-weeks) all the other Mag-7, which MAY, in itself, be a key in what @David_Snowball noted as dramatic differences in performance.
Rajiv Jain is not afraid to concentrate his bets in GQEIX (and in his other funds as well). M* reports 61% of AUM in the top ten, while the comparable figure is 42% for QLTY.
GMO, despite having a media relations firm, has been utterly uncommunicative for years.
In any case, I have reached out on your behalf with a question about a potential international ETF (or anything else under consideration). Steve, the MR guy, has promised to reach out to GMO. I'll share what I hear, perhaps in the form of a recording of crickets. (sigh)
Good interview in Barrons with Tom Hancock of QLTY. David has highlighted this fund recently. He is not a fan of NVDA or TSLA due to valuation concerns but does hold positions in the other Mag 7. Interesting that he has been able to keep pace with SPY since launch even without NVDA. The OEF version of this fund has outperformed SPY over the long term.
“So what else do Hancock and his team at GMO like? Hancock does believe in AI. He just thinks that there are better, more affordable ways to play the trend, such as Microsoft, which has an investment in Sam Altman’s ChatGPT creator, OpenAI; the cloud software company Salesforce.com; and Accenture, the consulting firm. The GMO U.S. Quality ETF  also owns Oracle and the chip-equipment manufacturers KLA and Lam Research”
It isn’t all about tech. Hancock said consumer staples and healthcare are also top areas of focus.
Quality value is about more than cyclicals,” Hancock said. “The differentiation for us is that we hold both growth and value stocks. It’s good for diversification.” To that end, the ETF also has big positions in more defensively oriented stocks, such as Coca-Cola, Procter & Gamble, UnitedHealth, Johnson & Johnson, and GE Aerospace.
Thanks @Sven and @MikeW; hadn't seen that. It explains a lot about how they run it, and why it holds up so well most of the time. Still my #1 choice for a U.S. equity fund. (Conservative investor here.)
Comments
Since QLTY's November 2023 launch, it is up 18.2%. That leads its multi-cap core Lipper peer group by 150 bps. The S&P 500 is up 17%. The GQG Partners US Select Quality is up 27%.
But GMO has dramatically outperformed GQG over the past five months (1, 2, 3, 4 and 5 month periods) while underperforming for six months and out. Curious.
Thanks for posting this info!
I think this is the fund David referred to, please correct me if I'm wrong.
GQG Partners US Select Quality Eq Instl GQEIX I struggle with making sense out of their Quartile Rank. I was expecting something less erratic.
GQG
QLTY
This might account for *uneven* results over short period of time.
David, could you speak with GMO about floating an international quality ETF?
That’s what I noticed at M*. NVDIA has so thoroughly out-performed (excluding last 2-weeks) all the other Mag-7, which MAY, in itself, be a key in what @David_Snowball noted as dramatic differences in performance.
In any case, I have reached out on your behalf with a question about a potential international ETF (or anything else under consideration). Steve, the MR guy, has promised to reach out to GMO. I'll share what I hear, perhaps in the form of a recording of crickets. (sigh)
https://mutualfundobserver.com/discuss/discussion/comment/176644/#Comment_176644