Quality Factor ETF - beats an Index Fund

A quality ETF selects companies based on profitability, low debt and consistent profits. The UBS US Quality Factor ETF ticker UC99 is the best performing quality factor ETF for UK investors.

Beating the market can be a very difficult thing to do particularly if you want to do it on a fairly consistent basis with costs that aren't excessive and with some rules that you can understand. One way to do it is a Quality Factor ETF, just simply select the companies with the best metrics then
hopefully over the long term these will outperform the cyclical and low margin businesses that you never much liked anyway.

If you apply the principles of Pareto to investing then 80% of the returns will come from 20% of the stocks I believe that these stocks are more likely to fit within the quality Factor than the junk Factor.

The quality factor screens for Return on Equity - so decent margins, debt to equity ratio - so not too much debt and earnings variability which is aimed to remove cyclical companies.

The US quality Factor ETF can fit within the Holy Grail of Investing which comes from Ray Dalio. It
looks at price growth, it looks at drawdowns and it looks at correlations between the funds in your portfolio. If you're interested in exploring this further then I offer a portfolio coaching.

Contact me
www.ianshadrack.com
Portfolio Coaching
www.ianshadrack.com/portfolio-coaching

Chapters
00:00 Selecting a low cost, consistent, outperforming fund that is easy to understand
02:08 What is a quality factor ETF?
03:58 Top holdings and top sectors of a Quality Factor ETF
05:40 Quality Factor ETF vs Fundsmith and Fidelity Magellan
07:00 Quality Factor ETF vs Value, Momentum, Dividend Yield & Size Factors
08:16 Potential downside of a Quality Factor ETF
08:52 The Holy Grail of Investing
09:15 Quality Factor ETF valuation metrics

Тэги:

#Etf_that_beat_the_s&p_500 #Etf_that_beats_a_tracker #Quality_factor_etf_explained #Ubs_quality_factor_etf #beat_an_index_fund #ishares_edge_msci_world_quality_factor_etf #msci_world_quality_factor_etf #quality_factor_etf #top_performing_etf #wisdomtree_global_quality_dividend_growth

Скачать видео