At a glance
QLTY charges 0.5% a year, above the 0.26% average of the 8 funds most like it (the 8th cheapest of 9). It has $5.18B in assets, the 4th largest of that group; it paid 0.66% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +15.9% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds. Its ten largest positions make up 44.1% of the fund, out of 43 in all.
The short version
GMO US Quality ETF (QLTY) is an actively managed fund from Grantham, Mayo, Van Otterloo & Co. (GMO). It holds about 43 US companies that GMO judges to be high quality, meaning businesses with strong, steady profits. It is concentrated: its 10 largest holdings made up 44% of assets as of August 31, 2026. It also costs 0.50% a year, about double the 0.26% average of similar funds.
Price history
The interactive chart needs JavaScript.
QLTY +15.9% 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 | |
|---|---|---|---|---|---|---|
| QLTY official prospectus, to Dec 31, 2025 | — | +21.12% | — | — | — | +23.35% |
| QLTY price data to Oct 27, 2026 | +14.1% | +15.9% | — | — | — | +21.4% |
- Over the year to Oct 27, 2026, QLTY returned +15.9%, 2nd of 9 among similar funds.
- Its worst full calendar year was 2024 (+21.0%); its best was 2025 (+21.3%).
- The deepest fall in its price history was 17% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 27, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.1% | — |
| 2025 | +21.3% | +21.12% |
| 2024 | +21.0% | +21.12% |
| 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) | $0.2000 | |
| 2025 | $0.2900 | +16.0% |
| 2024 | $0.2500 |
What's inside
As of Aug 31, 2026, the fund held 43 securities; the ten largest made up 44.08% of assets.
| Holding | Weight | |
|---|---|---|
| Microsoft Corp | 7.79% | |
| Alphabet Inc | 4.86% | |
| Apple Inc | 4.55% | |
| Johnson & Johnson | 4.38% | |
| Thermo Fisher Scientific Inc | 4.13% | |
| Lam Research Corp | 3.84% | |
| Meta Platforms Inc | 3.76% | |
| Broadcom Inc | 3.73% | |
| Amazon.com Inc | 3.61% | |
| Salesforce Inc | 3.42% | |
| Texas Instruments Inc | 3.39% | |
| Visa Inc | 2.90% | |
| NVIDIA Corp | 2.59% | |
| Netflix Inc | 2.58% | |
| Abbott Laboratories | 2.57% |
By country
United States 97.32%Ireland 2.24%By asset type
Stocks 99.56%By sector
Sectors of the companies held, for the 91.6% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $489.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.54%, +0.37%, +2.95%.
How it works
QLTY does not track an index. GMO picks US stocks it sees as high quality. That means an established business that earns high returns on past investments and uses its cash either to reinvest at high returns or to pay shareholders through dividends and share buybacks. GMO mixes systematic measures, such as profitability, how stable profits are and leverage (how much debt a company carries), with its own judgment about future profits, how management spends money, growth prospects and how well a company can hold off competitors. GMO also uses valuation tools, such as discounted cash flow analysis and price-to-earnings ratios, to try to buy these stocks for less than it thinks they are worth.
Under normal conditions, at least 80% of assets go to quality companies and at least 80% to companies tied to the US economy. GMO does not manage the fund against any benchmark, and it can lean heavily on one sector. As of August 31, 2026, technology made up 33.8% and health care 20.7%. Microsoft (7.8%), Alphabet (4.9%) and Apple (4.5%) led the 43 holdings. Trading is light: portfolio turnover was 4%.
The structure is a plain stock ETF, with no leverage and no options. It held no derivatives as of August 31, 2026. It may lend out its securities, hold other ETFs and park cash in the GMO U.S. Treasury Fund or in money market funds.
What it really costs
- QLTY charges 0.5% a year, versus an average of 0.26% for the similar funds below (8th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| QLTY | $51 | $160 | $280 | $628 |
In a retirement portfolio
It holds large, profitable US companies and has moved less than the market (a one-year beta of 0.88), so it could fill part of a US stock allocation, but it is concentrated and costs more than index alternatives.
QLTY could cover part of the US stock slot with a tilt toward profitable large companies. Its record is short. It launched in November 2023, so it was not around for the 2008, 2020 or 2022 downturns. Its deepest drop was 17%, from February 19 to April 8, 2025. It recovered by June 27, 2025, about 2.6 months later. Anyone who had to sell during that drop to cover spending would have locked in a loss. It has never had a losing calendar year: it gained about 21% in both 2024 and 2025. That means no one knows yet how it holds up through a long bear market.
Income is small. The trailing yield was 0.66% as of October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 invested would cost $628 in fees over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want about 43 hand-picked, profitable US companies, led by Microsoft, Alphabet and Apple, instead of a full market index.
- Those who value GMO's mix of quality screens, valuation work and manager judgment and accept paying 0.50% a year for it.
- Long-term holders comfortable with a short record: about 21% gains in 2024 and 2025, plus a 17% drop in spring 2025.
Look elsewhere if
- Cost-focused investors: iShares MSCI USA Quality Factor ETF (QUAL) charges 0.15% and Vanguard Mega Cap ETF (MGC) 0.07%, against QLTY's 0.50%.
- Income seekers: the trailing yield was just 0.66% as of October 27, 2026.
- Investors wanting broad diversification or less tech: technology was 33.8% and the top 10 holdings 44% of assets as of August 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| QLTY this fund | — | 0.5% | $5.18B | +15.9% | — |
| USMC Principal U.S. Mega-Cap ETF | 45% | 0.12% | $3.49B | +11.3% | +24.5% |
| SCHG Schwab U.S. Large-Cap Growth ETF | 44% | 0.04% | $63.03B | +2.2% | +23.0% |
| QUAL iShares MSCI USA Quality Factor ETF | 43% | 0.15% | $46.53B | +14.1% | +19.6% |
| NSCR Nuveen Sustainable Core ETF | 42% | 0.46% | $6.9M | -6.3% | — |
| VSLU Applied Finance Valuation Large Cap ETF | 41% | 0.49% | $545.8M | +12.5% | +24.8% |
| PGRO Putnam Focused Large Cap Growth ETF | 41% | 0.56% | $212.1M | +3.1% | +24.6% |
| GARP iShares MSCI USA Quality GARP ETF | 41% | 0.15% | $2.52B | +16.9% | — |
Questions investors ask
Is QLTY an index fund?
No. QLTY is actively managed by GMO, which does not manage it against any index or benchmark. GMO chooses stocks using measures such as profitability, profit stability and debt, plus its own view of each company's future and its valuation. As of August 31, 2026, the fund held 43 stocks, with Microsoft, Alphabet, Apple, Johnson & Johnson and Thermo Fisher Scientific as its largest positions.
What's the difference between QLTY and QUAL?
QLTY is picked by GMO's managers. iShares MSCI USA Quality Factor ETF (QUAL) is built around an MSCI quality factor approach. About 43% of their holdings overlap. QUAL is much cheaper at 0.15% a year versus 0.50% for QLTY, and much larger at about $46.5 billion versus $5.2 billion. Over the past year, QLTY returned 15.9% as of October 27, 2026. QUAL returned 14.3% as of October 29, 2026.
Does QLTY pay dividends?
Yes, QLTY pays dividends quarterly, but they are small. Over the trailing 12 months it paid about $0.29 per share, a yield of 0.66% as of October 27, 2026. Many of its holdings, such as Microsoft, Alphabet and Amazon, return cash mainly through reinvestment or buybacks instead of large dividends. The fund suits growth more than income.
What is QLTY's expense ratio?
QLTY's expense ratio is 0.50% a year, all of it management fee, according to its prospectus filed June 30, 2026. That ranks 8th of 9 among similar funds, whose average is 0.26%. In the SEC's standard example, $10,000 earning 5% a year would cost about $51 in the first year, $280 over five years and $628 over 10 years.
How has QLTY performed since launch?
QLTY has performed well over its short life. According to its prospectus, it returned 21.12% for the year ending December 31, 2025, and 23.35% a year on average since its November 2023 launch. Its strongest quarter was up 11.78% (first quarter of 2024) and its weakest was down 2.19% (first quarter of 2025). Based on price, it was up 14.1% for 2026 through October 27.