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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?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $988.97 million, making it one of the larger ETFs in the Style Box - All Cap Growth. This particular fund, before fees and expenses, 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 GARP are 0.15%, which makes it one of the least expensive products in the space.
GARP's 12-month trailing dividend yield is 0.31%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
GARP's heaviest allocation is in the Information Technology sector, which is about 49.8% of the portfolio. Its Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 5.37% of total assets, followed by Meta Platforms Inc Class A (META) and Apple Inc (AAPL).
The top 10 holdings account for about 46.24% of total assets under management.
Performance and Risk
The ETF return is roughly 0% so far this year and is up roughly 21.45% in the last one year (as of 01/01/2026). In the past 52-week period, it has traded between $45.13 and $69.52
The ETF has a beta of 1.16 and standard deviation of 23.10% for the trailing three-year period. With about 143 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.
iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID and the iShares Core S&P U.S. Growth ETF (IUSG) tracks S&P 900 Growth Index. iShares Morningstar Growth ETF has $2.94 billion in assets, iShares Core S&P U.S. Growth ETF has $26.34 billion. ILCG has an expense ratio of 0.04% and IUSG changes 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?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $988.97 million, making it one of the larger ETFs in the Style Box - All Cap Growth. This particular fund, before fees and expenses, 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 GARP are 0.15%, which makes it one of the least expensive products in the space.
GARP's 12-month trailing dividend yield is 0.31%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
GARP's heaviest allocation is in the Information Technology sector, which is about 49.8% of the portfolio. Its Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 5.37% of total assets, followed by Meta Platforms Inc Class A (META) and Apple Inc (AAPL).
The top 10 holdings account for about 46.24% of total assets under management.
Performance and Risk
The ETF return is roughly 0% so far this year and is up roughly 21.45% in the last one year (as of 01/01/2026). In the past 52-week period, it has traded between $45.13 and $69.52
The ETF has a beta of 1.16 and standard deviation of 23.10% for the trailing three-year period. With about 143 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.
iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID and the iShares Core S&P U.S. Growth ETF (IUSG) tracks S&P 900 Growth Index. iShares Morningstar Growth ETF has $2.94 billion in assets, iShares Core S&P U.S. Growth ETF has $26.34 billion. ILCG has an expense ratio of 0.04% and IUSG changes 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.