VFQY: The Quality ETF With A Strong Value And Small Cap Tilt

Radar Insights
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Summary

  • Quality stocks are shining in a slowing economy, as they have strong balance sheets and low default risk.
  • The recent drop in interest rates is a tailwind for value and small-cap stocks.
  • Vanguard U.S. Quality Factor ETF has been the best-performing quality ETF over the past month, thanks to its value and small-cap tilt.

Small ball out balance.

skegbydave

With a slowing economy that might be on the verge of a recession, quality stocks are shining. Quality stocks have strong balance sheets and hence low default risk. When the economy slows down this is a valuable feature. In such an economic backdrop

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Hi, I’m a private investor and a teacher. I like to program and the stock markets are a fertile playground for data analysis and visualisation and this helps me take well-informed decisions.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VFQY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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