QLTY | GMO U.S. Quality ETF

Through market cycles and dislocations, high-quality equities have proven to be a stable group of exceptional businesses ideally suited to compounding capital.  

The GMO Quality Strategy presents investors with an ideal core equity holding that has delivered strong returns, stability, and downside protection for nearly 20 years and counting.

In 2022 we launched the GMO Small Cap Quality Strategy. Now, a year later, we are pleased to report that our results have exceeded even our most optimistic projections.

Valuation metrics across all but the U.S. interest rate dimension remain unambiguously attractive.

Japanese profits have benefited from prolonged deleveraging, but the equity market has continued to de-rate despite improved fundamentals. This makes for a very interesting opportunity for investors.

Investors have been underweight Japan for decades, but conditions on the ground have changed meaningfully. Amid improving fundamentals and governance reforms, it’s time to close the gap.

Argentina and Ecuador have both struggled to recoup the confidence to once again borrow in international commercial debt markets. Are they simply incorrigible? We don’t think so.

Ben Inker and John Pease discuss the new economic regime, how investors can prepare for a recession, and the merits of combining high quality and cheap assets in today’s environment.