Stocks have rebounded nicely after a brutal sell-off last week. However, with rising trade tensions and slowing global growth, investors have been pouring a lot of money into quality ETF. These ETFs hold stocks with excellent earnings records and strong balance sheets.  Such stocks hold up rather well during market swings.

Many academic studies have demonstrated that high quality companies--as determined by factors such as high earnings quality and low leverage-- consistently deliver better risk adjusted returns than the broader market over the long term.

An academic paper " Quality Minus Junk " studied quality stocks--defined as those with high profits, high growth, low risk, and high payouts, and found that these stocks yield above-average risk-adjusted returns. The study was based on a broad sample of stocks covering 24 developed countries between 1986 and 2012.

To learn more about the iShares Edge MSCI USA Quality Factor ETF (QUAL Quick QuoteQUAL - Free Report) , the Invesco S&P 500 Quality ETF (SPHQ Quick QuoteSPHQ - Free Report) and the SPDR MSCI USA StrategicFactors ETF (QUS Quick QuoteQUS - Free Report) , please watch the short video above.

Top holdings in these ETFs include high quality stocks like Apple (AAPL Quick QuoteAAPL - Free Report) . Microsoft (MSFT Quick QuoteMSFT - Free Report) , Johnson & Johnson (JNJ Quick QuoteJNJ - Free Report) , Facebook and Mastercard (MA Quick QuoteMA - Free Report)

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