iShares MSCI USA Quality GARP ETF

The iShares MSCI USA Quality GARP ETF (GARP) is a BlackRock index fund that tracks the MSCI USA Quality GARP Select Index. The index holds about 150 large and mid-sized U.S. growth stocks and gives more weight to the ones that also look reasonably priced and financially sound. The fund charges 0.15% a year, close to the 0.14% average of similar growth funds. It leans heavily on chip stocks: KLA and Micron were its two largest holdings as of June 30, 2026.

• Over the year to Oct 27, 2026, GARP returned +16.9%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+21.5%); its best was 2025 (+21.5%).
• The deepest fall in its price history was 23.7% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 25, 2025.

As of Jun 30, 2026, the fund held 131 securities; the ten largest made up 43.76% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $681.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.26%, +12.02%, +0.89%.

GARP tracks the MSCI USA Quality GARP Select Index, which is built by MSCI. GARP stands for "growth at a reasonable price." MSCI starts with the MSCI USA Index of large and mid-sized U.S. companies. It gives each stock a growth score based on five measures: expected long-term and short-term earnings growth, an internal growth rate, and long-term trends in earnings and sales per share. It then picks the highest scorers until they make up about half the parent index's total market value. The index had 148 stocks as of March 31, 2026.

Each stock's weight starts from its market value and is then adjusted by a "tilt score." Cheaper stocks score higher, judged by price-to-book, forward price-to-earnings and enterprise value to operating cash flow. So do higher-quality stocks, judged by return on equity (profit compared with shareholders' money), debt levels and steady earnings. Each stock is measured against others in its sector. The largest companies get lower tilt scores. No company may go above 5% at a rebalance, and limits on sectors and turnover also apply. The index rebalances every quarter.

BlackRock uses representative sampling. That means the fund holds a sample of stocks chosen to behave like the index, and it held 131 stocks as of June 30, 2026. Weights can drift between rebalances. KLA was 6.5% of the fund on that date. The fund may also use derivatives, such as a tiny Nasdaq-100 futures position, and may lend out up to a third of its assets.

• GARP charges 0.15% a year, versus an average of 0.14% for the similar funds below (5th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).

GARP is a concentrated, technology-heavy growth fund that has swung more than the broad market, so it fits better as a smaller slice next to broader holdings than as the base of a portfolio.

GARP could add growth potential, but with bigger swings than the broad market. Its beta over the year to October 27, 2026 was 1.5. Beta compares a fund's moves with the market's, so GARP tended to move about 1.5 times as much as the market. The fund launched in January 2020, so it has no record from 2008. Its prospectus shows a 26.72% loss in 2022, its worst calendar year. Since June 2024, its deepest drop was 23.7%, from February 19 to April 8, 2025. It recovered by June 25, 2025. A retiree who sold shares during a drop like that would lock in the loss.

GARP pays very little income. Its yield was 0.25% as of October 27, 2026, paid quarterly. Its 0.15% fee works out to $192 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.