At a glance
QLTI charges 0.6% a year, above the 0.38% average of the 3 funds most like it (the most expensive of 4). It has $297.1M in assets, the 4th largest of that group; it paid 0.18% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +5.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 4 funds. Its ten largest positions make up 42.3% of the fund, out of 35 in all.
The short version
GMO International Quality ETF (QLTI) is an actively managed fund. As of August 31, 2026, it held 35 stocks of non-US companies that GMO judges to be high quality, led by Taiwan Semiconductor, Inditex and SAP. It is a concentrated portfolio picked by its managers rather than an index, and it leans heavily toward Europe. That approach costs more: 0.60% a year, against a 0.38% average for the similar quality funds compared here.
Price history
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QLTI +5.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| QLTI official prospectus, to Dec 31, 2025 | — | +16.90% | — | — | — | +5.98% |
| QLTI price data to Oct 27, 2026 | +5.0% | +5.5% | — | — | — | +6.3% |
- Over the year to Oct 27, 2026, QLTI returned +5.5%, 4th of 4 among similar funds.
- Its worst full calendar year was 2025 (+17.1%); its best was 2025 (+17.1%).
- The deepest fall in its price history was 14.8% (Mar 5, 2025 to Apr 8, 2025), recovered by May 19, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.0% | — |
| 2025 | +17.1% | +16.90% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.0200 | |
| 2025 | $0.1400 |
What's inside
As of Aug 31, 2026, the fund held 35 securities; the ten largest made up 42.33% of assets.
| Holding | Weight | |
|---|---|---|
| Taiwan Semiconductor Manufacturing Co Ltd | 5.29% | |
| Industria de Diseno Textil SA | 5.27% | |
| SAP SE | 4.70% | |
| Unilever PLC | 4.14% | |
| Novartis AG | 3.88% | |
| Amadeus IT Group SA | 3.84% | |
| Kerry Group PLC | 3.83% | |
| ASML Holding NV | 3.82% | |
| Safran SA | 3.80% | |
| L'Oreal SA | 3.78% | |
| Roche Holding AG | 3.71% | |
| Air Liquide SA | 3.68% | |
| Haleon PLC | 3.66% | |
| Compass Group PLC | 3.20% | |
| Knorr-Bremse AG | 3.14% |
By country
France 22.63%United Kingdom 13.63%Spain 9.11%Switzerland 8.5%Germany 7.84%By asset type
Stocks 99.18%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $1.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.03%, +0.19%, +2.64%.
How it works
QLTI does not track an index. Its adviser, Grantham, Mayo, Van Otterloo & Co. (GMO), picks non-US stocks it considers high quality. These are established businesses that earn high returns on past investments. They use their cash to reinvest at high returns or to pay dividends and buy back shares. At least 80% of assets go to quality companies. That means firms in an independent quality index, firms with similar traits, or firms in the top half of GMO's own quality rankings.
GMO blends systematic measures, such as profitability, profit stability and debt levels, with its own judgment. It weighs future profits, how management spends cash, growth prospects and staying power against competitors. It also uses valuation tools, such as discounted cash flow analysis (estimating what future profits are worth now) and price-to-earnings ratios. The aim is to buy quality stocks below their fair value. There is no benchmark and no fixed rebalancing schedule, so GMO's views set position sizes. Portfolio turnover was 5%.
The fund owns stocks directly and held no derivatives as of August 31, 2026. It can buy companies of any size, in both developed and emerging markets, and it may lend its securities. Exchange-rate swings affect returns because the holdings are priced in foreign currencies. With 35 companies and the top 10 at about 42% of assets, a few names drive results.
What it really costs
- QLTI charges 0.6% a year, versus an average of 0.38% for the similar funds below (4th of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| QLTI | $61 | $192 | $335 | $750 |
In a retirement portfolio
It adds a concentrated basket of mostly European, non-US quality companies to a portfolio that may lean heavily on US stocks.
QLTI launched October 28, 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 16.9%. Its weakest quarter, ending December 31, 2024, lost 8.42%. Its deepest drop was 14.8%, from March 5 to April 8, 2025, and it recovered by May 19, 2025. A long bear market could cut deeper and last longer than anything in this short record. That matters for anyone who may need to sell shares in a bad year.
Income is small: the trailing 12-month yield was 0.18% as of October 27, 2026, paid twice a year. It costs 0.60% a year, or $61 in the first year on $10,000 under the SEC's standard example. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking GMO's active pick of 35 profitable, financially sturdy non-U.S. companies, led by Taiwan Semiconductor, Inditex and SAP as of August 31, 2026.
- Long-term holders who value patience: portfolio turnover was 5% in the prospectus filed June 30, 2026, meaning GMO rarely swapped holdings.
- Investors wanting to diversify beyond U.S. stocks with a European tilt: about 23% in France and 14% in the U.K. as of August 31, 2026.
Look elsewhere if
- Cost-focused investors: the 0.60% annual expense ratio ($61 on $10,000 in year one) tops IQDG and DNL at 0.42% and IDHQ at 0.29%.
- Retirees seeking income: the trailing yield was just 0.18% as of October 27, 2026, paid twice a year, leaving little cash for spending.
- Those wanting a proven record: QLTI launched October 28, 2024, and its 5.5% one-year return to October 27, 2026, trailed three similar funds.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Is QLTI good for retirement?
It could serve as a diversifier, adding about 35 non-US quality stocks to a portfolio that leans on US shares. But its record is short. QLTI launched October 28, 2024, so it has no history through the 2020 or 2022 downturns. Its deepest drop was 14.8% in early 2025, and it recovered in about 1.3 months. Its 0.60% expense ratio is higher than similar quality funds, and it pays little income.
What stocks does QLTI hold?
As of August 31, 2026, QLTI held 35 companies, and the 10 largest made up about 42% of assets. The top five were Taiwan Semiconductor Manufacturing (5.3%), Industria de Diseno Textil, known as Inditex (5.3%), SAP (4.7%), Unilever (4.1%) and Novartis (3.9%). France was the largest country weight at about 23%, followed by the UK at about 14% and Spain at about 9%.
What is the QLTI expense ratio?
QLTI's expense ratio, the yearly fee taken from fund assets, is 0.60%, according to the prospectus filed June 30, 2026. All of it is the management fee. That makes it the most expensive of the four quality funds compared here, which average 0.38%. Under the SEC's standard example, $10,000 earning 5% a year would cost about $61 in the first year and $750 over 10 years.
What's the difference between QLTI and IQDG?
Both buy non-US quality companies, but they own quite different stocks: only about 7% of their holdings overlap. QLTI is actively managed by GMO and holds about 35 stocks. WisdomTree International Quality Dividend Growth Fund (IQDG) charges less, at 0.42% versus 0.60%. It is also larger, with $695 million in net assets as of June 30, 2026. Over the year through October 27, 2026, IQDG returned 6.7% and QLTI 5.5%.
Does QLTI pay dividends?
Yes, but not much. QLTI pays distributions semiannually, or twice a year. Over the 12 months through October 27, 2026, it paid about $0.05 per share, a trailing yield of 0.18%. The fund's objective is total return, not income. GMO picks stocks for quality and valuation rather than yield. Investors who want steady cash flow may find dividend-focused funds worth comparing.