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Is iShares MSCI USA Quality GARP ETF (GARP) a Strong ETF Right Now?
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Making its debut on 01/14/2020, smart beta exchange traded fund iShares MSCI USA Quality GARP ETF (GARP - Free Report) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $349.28 million, making it one of the average sized ETFs in the Style Box - All Cap Growth. Before fees and expenses, GARP seeks to match the performance of the MSCI USA QUALITY GARP SELECT INDEX .
The MSCI USA Quality GARP Select Index composes of U.S. large and mid-capitalization growth stocks exhibiting favourable value and quality characteristics.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.37%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
GARP's heaviest allocation is in the Information Technology sector, which is about 47.90% of the portfolio. Its Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Broadcom Inc (AVGO - Free Report) accounts for about 6.02% of total assets, followed by Meta Platforms Inc Class A (META - Free Report) and Apple Inc (AAPL - Free Report) .
The top 10 holdings account for about 45.34% of total assets under management.
Performance and Risk
Year-to-date, the iShares MSCI USA Quality GARP ETF has added about 5.29% so far, and is up roughly 0% over the last 12 months (as of 02/20/2025). GARP has traded between $47.04 and $59.23 in this past 52-week period.
The fund has a beta of 1.07. With about 145 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI USA Quality GARP ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Fidelity Blue Chip Growth ETF (FBCG - Free Report) tracks ---------------------------------------- and the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) tracks S&P 900 Growth Index. Fidelity Blue Chip Growth ETF has $4.25 billion in assets, iShares Core S&P U.S. Growth ETF has $21.72 billion. FBCG has an expense ratio of 0.59% and IUSG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is iShares MSCI USA Quality GARP ETF (GARP) a Strong ETF Right Now?
Making its debut on 01/14/2020, smart beta exchange traded fund iShares MSCI USA Quality GARP ETF (GARP - Free Report) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $349.28 million, making it one of the average sized ETFs in the Style Box - All Cap Growth. Before fees and expenses, GARP seeks to match the performance of the MSCI USA QUALITY GARP SELECT INDEX .
The MSCI USA Quality GARP Select Index composes of U.S. large and mid-capitalization growth stocks exhibiting favourable value and quality characteristics.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.37%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
GARP's heaviest allocation is in the Information Technology sector, which is about 47.90% of the portfolio. Its Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Broadcom Inc (AVGO - Free Report) accounts for about 6.02% of total assets, followed by Meta Platforms Inc Class A (META - Free Report) and Apple Inc (AAPL - Free Report) .
The top 10 holdings account for about 45.34% of total assets under management.
Performance and Risk
Year-to-date, the iShares MSCI USA Quality GARP ETF has added about 5.29% so far, and is up roughly 0% over the last 12 months (as of 02/20/2025). GARP has traded between $47.04 and $59.23 in this past 52-week period.
The fund has a beta of 1.07. With about 145 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI USA Quality GARP ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Fidelity Blue Chip Growth ETF (FBCG - Free Report) tracks ---------------------------------------- and the iShares Core S&P U.S. Growth ETF (IUSG - Free Report) tracks S&P 900 Growth Index. Fidelity Blue Chip Growth ETF has $4.25 billion in assets, iShares Core S&P U.S. Growth ETF has $21.72 billion. FBCG has an expense ratio of 0.59% and IUSG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.