Why buy the entire world ETF when you can just pick the 100 best quality companies that outperform the MSCI World and S&P500? The same applies to the top 100 stocks from the S&P 500 -> $QUS5 (+1,4 %)
why not buy the MSCI World Quality $XDEQ? or the $GGRG At the end of the day, you are mapping the quality factor, it is difficult to say which system best exploits this, which is why I am a fan of diversifying the individual factors with different methodologies.
April Rebalancing: Strategic Shifts in the Portfolio
The semi-annual rebalancing of the SPDR S&P Developed Quality Aristocrats ETF ($QDEV (+1,63 %) ) has just been completed, bringing notable changes to the composition of this quality-focused investment vehicle.
This rebalancing aligns QDEV with evolving market conditions while maintaining its focus on quality companies with strong financial foundations. For investors seeking exposure to financially robust global corporations, these changes appear strategically sound, particularly with the inclusion of resilient tech giants and hospitality leaders positioned for growth.
Will this prove to be a winning choice? The fundamentals certainly suggest so.
Very interesting article on the topic of quality shares by $SPGI (+0,92 %) Exploring the Principles of Consistency and Efficiency in Free Cash Flow Metrics
Thanks for sharing this paper, very interesting, I'm actively buying $QDEV since January, and I think it will pay back in the future years. I want to hold it for the next 20 years.
I love quality factor and study and papers about this, just without fcf, are very interesting and meaningful.
After much deliberation and a lot of tax calculations, I have decided to sell my long-standing Nasdaq ETF $CSNDX (+1,71 %) to sell. The P/E of ~40 was just too hot for me and the ever increasing weighting of bubble-like stocks like $PLTR (+7,48 %) and $MSTR (+3,77 %) (and a few others that don't excite me at all) really got on my nerves. In my X-Ray Holdings analysis, I saw how they kept creeping up - that was enough for me. What's more, my US and tech allocation has continued to grow in recent years. Not dramatically, but more than I would like.
So I completely liquidated the Nasdaq and reallocated the money: 75% into an S&P 500 Quality Aristocrats ETF $QUS5 (+1,4 %) and 25 % into an S&P Global Quality Aristocrats ETF $QDEV (+1,63 %) . I want to invest in companies that really make money and not just sell fantasies. The two ETFs are still fairly new and currently have little volume and AUM (I am aware of the risk). But they fit my strategy perfectly: only companies with at least 10 years of positive free cash flow (FCF), high FCF margin and strong ROIC. Exactly my thing! 🎯
Sure, the ETFs might take a while to get bigger, but I'm all about long-term quality and stable cash flows - no hype, no gambling! 🚀📈
