QUAL ETF Analysis: Holdings, Fees, Inception, Sectors, And Portfolio Role

Investor Checklist

• Issuer and listing venue: BlackRock, BATS.
• Launch date and fee: Jul 18, 2013, 0.15%.
• Portfolio size and concentration: 125 holdings, with the top 10 at 40.33%.
• Primary exposure: Equity; Large Blend; North America; Index: MSCI USA Sector Neutral Quality
• Best use case: Factor or style sleeve that can complement a broad index fund and change portfolio exposure by valuation, growth, dividend, or quality profile.
• Main risk to respect: The key risk is that QUAL's stated diversification may not protect investors if its dominant exposure, largest holdings, or main macro factor reverses. Current top-10 concentration is 40.33%.

QUAL Investor Snapshot

QUAL is iShares MSCI USA Quality Factor ETF, issued by BlackRock. It is best understood as a core U.S. equity building block. The fund has $51.10B in AUM, charges 0.15%, holds 125 holdings, and has top-10 concentration of 40.33%. Its largest listed holdings include NVIDIA Corporation (7.11%), Apple Inc. (6.83%), Microsoft Corporation (5.10%).

QUAL ETF Facts: Launch Date, Issuer, Fee, Assets, And Strategy

QUAL is iShares MSCI USA Quality Factor ETF. Issuer: BlackRock. Exchange: BATS. Inception: Jul 18, 2013. Expense ratio: 0.15%. AUM: $51.10B. Mandate or tracked index: MSCI USA Sector Neutral Quality

QUAL Top Holdings And Concentration

Holdings snapshot: May 19, 2026. QUAL has 125 holdings. The top 10 positions account for 40.33%, so investors should read the fund through its largest holdings first rather than assuming every ETF is equally diversified.

• $NVDA - NVIDIA Corporation: 7.11%
• $AAPL - Apple Inc.: 6.83%
• $MSFT - Microsoft Corporation: 5.10%
• $META - Meta Platforms, Inc.: 3.40%
• $LRCX - Lam Research Corporation: 3.38%
• $LLY - Eli Lilly and Company: 3.15%
• $V - Visa Inc.: 3.05%
• $TJX - The TJX Companies, Inc.: 3.03%
• $KLAC - KLA Corporation: 2.74%
• $GOOGL - Alphabet Inc.: 2.52%

QUAL Sector And Industry Exposure

QUAL exposure summary: Equity; Large Blend; North America; Index: MSCI USA Sector Neutral Quality. These exposures explain what investors actually own after buying the ETF. A broad fund is usually driven by sector weights and mega-cap leadership; a sector or thematic fund is driven by the industry cycle; a bond or alternative asset fund is driven by macro variables rather than company earnings.

• Technology: 33.79%. Sector weight from the latest public ETF holdings snapshot.
• Financials: 13.14%. Sector weight from the latest public ETF holdings snapshot.
• Consumer Discretionary: 10.61%. Sector weight from the latest public ETF holdings snapshot.
• Health Care: 9.01%. Sector weight from the latest public ETF holdings snapshot.
• Communication Services: 8.67%. Sector weight from the latest public ETF holdings snapshot.
• Industrials: 8.49%. Sector weight from the latest public ETF holdings snapshot.
• Consumer Staples: 5.25%. Sector weight from the latest public ETF holdings snapshot.
• Energy: 2.60%. Sector weight from the latest public ETF holdings snapshot.
• Utilities: 2.35%. Sector weight from the latest public ETF holdings snapshot.
• Real Estate: 2.11%. Sector weight from the latest public ETF holdings snapshot.

QUAL Fees, Liquidity, And Product Structure

QUAL trades on BATS. The stated expense ratio is 0.15%, and current AUM is $51.10B. Lower fees matter most for long holding periods, while AUM and trading depth matter when investors place larger orders or need reliable execution during volatile sessions.

QUAL Return Drivers: What Has To Go Right

The return drivers for QUAL are corporate earnings growth, valuation multiples, dividends, market breadth, and mega-cap leadership. That matters because two ETFs can both look diversified but respond to very different conditions. For QUAL, investors should compare price performance with the fund's dominant exposure, the largest holdings, and the macro factor behind the category.

QUAL Current Market Theme

iShares MSCI USA Quality Factor ETF is a Large Blend ETF with $51.10B in AUM, 125 holdings, top-10 concentration of 40.33%, and a leading exposure to Technology (33.79%). The largest holdings include NVIDIA Corporation (7.11%), Apple Inc. (6.83%), Microsoft Corporation (5.10%).

When QUAL Tends To Work

QUAL tends to work when corporate earnings growth, valuation multiples, dividends, market breadth, and mega-cap leadership are moving in the fund's favor.

QUAL Portfolio Role: Core Holding Or Satellite Position?

Factor or style sleeve that can complement a broad index fund and change portfolio exposure by valuation, growth, dividend, or quality profile. In practical portfolio terms, QUAL should be sized according to whether it is replacing broad market exposure, adding a factor tilt, expressing a sector view, or hedging a macro risk. The more concentrated the fund, the less it should be treated as a complete portfolio by itself.

QUAL Key Risks Investors Should Watch

The main risks are specific enough to check before buying, not generic ETF fine print.

• Market risk: QUAL can fall with its asset class even when the fund structure works as designed.
• Concentration risk: top-10 weight is 40.33%, which is high for an ETF in this category.
• Exposure risk: the main exposure is Equity; Large Blend; North America; Index: MSCI USA Sector Neutral Quality
• Fee and trading risk: expense ratio is 0.15%; investors should still check spread, volume, and premium/discount before large orders.
• Thesis risk: The key risk is that QUAL's stated diversification may not protect investors if its dominant exposure, largest holdings, or main macro factor reverses. Current top-10 concentration is 40.33%.

Who QUAL Is Suitable For

QUAL can be useful, but the right investor depends on time horizon, existing overlap, and drawdown tolerance.

• More suitable for investors who need a core U.S. equity building block.
• More suitable for investors who understand that QUAL's top holdings and sector exposures can dominate short-term returns.
• Less suitable for investors who need stable cash income unless the fund's underlying asset class is explicitly income-oriented.
• Less suitable for investors already heavily exposed to the same largest holdings or same macro factor.

QUAL What To Monitor Next

QUAL should be reviewed after new holdings files, major market moves, or category-specific catalysts. The most important checks are:

• Holdings as of May 19, 2026.
• AUM: $51.10B.
• Expense ratio: 0.15%.
• Top-10 weight: 40.33%.

QUAL Action Reference

A useful ETF article should end with a decision framework. For QUAL, the practical read is:

• Long-term investor: use as a core equity sleeve and rebalance instead of trading every headline.
• Investor with heavy mega-cap exposure: compare overlap before adding more.
• Tactical investor: watch market breadth and equal-weight relative strength.

QUAL Bottom Line

QUAL is not just a fund name. It is a package of exposures: iShares MSCI USA Quality Factor ETF; issuer BlackRock; fee 0.15%; AUM $51.10B; 125 holdings; top-10 weight 40.33%; holdings date May 19, 2026. The investment case is strongest when the fund's largest holdings, main exposure, and category-level return drivers all point in the same direction.

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